Crypto Frontline

BTCUSD (Coinbase)

Our prediction last week was right, and Bitcoin indeed touched the $80k mark after breaking to a new ATH. Since the winner of the US election is now clear, there was no point for market participants to stay risk averse.

This is a key technical development and as long as the price manages to stay above the $74k – $71.5k role reversal level, the market is likely to remain bullish. Buyers are still chasing the upside after the impulsive move up on Sunday.

Since we are trading in uncharted territory, spotting resistance areas is trickier. We advise traders to use round numbers like $85k or $90k, as well as FIB extension levels. Positive seasonality and in the absence of any risk events should act as a tailwind for Bitcoin in the short-term, pushing the market even higher from the current level.

Our risk-off signal is a break below the prior all-time high at $74k. The price has to dip below it and continue impulsively to suggest buyers are exiting and on top of that, sellers are shorting this market aggressively.

ETHUSD (Kraken)

Ether broke above the $3k mark and the daily 200 SMA impulsively, which is positive news for buyers. Clearing out that resistance zone was critical to prevent a correction. The enthusiasm is now broad-based, and even dog coins are rallying hard, so it shouldn’t be surprising to see the second-largest coin in the world recovering from lows.

At the time of writing, the price is retracing from Sunday highs, which provides an opportunity for those eager to enter long. We view the $3,050 – $3k area as support and more buyers should be waiting there.

The same goes for the $2.8k area, where the price could fall in case of a deeper correction. Either way, the market structure is now favoring the bulls and we think ETH is headed to $3.5k – $3.7k in the upcoming weeks.

Although it won’t rise in a straight line, that seems like the most likely target. We’ll continue to update on this every week since new developments can occur and change the picture.

ADAUSD (Binance)

Cardano skyrocketed last week, up more than 100% from bottom tick to top tick. The coin is volatile and already retraced 10 cents from the highs, but that doesn’t mean the push has ended. Thus far, this can be labeled as a retracement to the mean, offering new opportunities to enter at more affordable prices.

The consolidation could extend further, which is why we advise patience. ADA could dip to the 52-50 cents support area before staging a new pull higher. Breaking that will unlock more downside to 45 cents.

To the upside, we still see 60 and 65 cents as important resistance levels. The market has to break and hold above them in order to be able to reach the March highs at 80 cents. There does seem to be a greater appetite for smaller altcoins and ADA is benefiting.