A well-known crypto analyst from the YouTube channel Crypto Capital Venture recently shared his insights on the potential breakouts of both Bitcoin and Cardano in his latest video published on November 24th. While he refrained from declaring a new bull market, the analyst observed encouraging signs of building momentum, particularly in the case of Cardano (ADA). According to him, this upward movement is occurring early in the current cycle, indicating potential significant developments.
When it comes to Bitcoin (BTC), the analyst focuses on a crucial resistance level at approximately $38,000 in the long term. Interestingly, this level aligns with shorter-term overhead resistance on the six-hour chart. Should Bitcoin successfully surpass the upper trendline, which intersects with a yellow trendline, it would constitute a breakout that has not been seen in previous cycles. However, the analyst also anticipates a possible pullback before such a breakout, with the cryptocurrency potentially retracing towards the $33,000 level.
If Bitcoin manages to break through the resistance mentioned earlier, it would not only shake up the market but also suggest an excessive level of bullishness. This would imply that the sentiment surrounding cryptocurrencies is overly positive, potentially requiring a correction or consolidation period.
Regarding Cardano’s ADA, the analyst finds the price action to be even more exciting. He highlights a bullish breakout from a long-term falling trendline. Furthermore, ADA is currently positioned above its 20-week and 50-week moving averages, indicating significant potential for future gains without becoming overbought, unlike other tokens that have already experienced parabolic advances.
By analyzing the daily ADA-USD chart, the analyst identifies an ascending triangle pattern, pointing towards a potential price target of around $0.45 if resistance around $0.40 is overcome. Such a breakout could set the stage for testing key resistance levels at approximately $0.70 in the future. However, it is crucial for Cardano to maintain its position above the 20-day moving average to avoid a more substantial decline.
Taking all these factors into consideration, the analyst emphasizes that both Bitcoin and ADA show promising signs of upward momentum. Should sustainable breakouts occur in the short term, it could indicate the beginning of a new bullish phase for cryptocurrencies heading into 2024. However, he also cautions that the market may experience choppy and sideways price action, warranting a degree of caution among investors.
The crypto analyst has identified potential breakouts for both Bitcoin and Cardano in the near future. While Bitcoin faces key resistance around $38,000, Cardano’s ADA has already experienced a bullish breakout from a long-term falling trendline. These developments, if sustained, could signify the start of a bullish period for cryptocurrencies. However, market volatility and the possibility of sideways price action cannot be overlooked. As always, investors should approach these potential breakouts with careful consideration and stay updated on market developments.