- Analyst Dan Gambardello tweeted his latest technical analysis for BTC and ADA.
- BTC’s price has broken below a key trendline according to Gambardello.
- CPI data may come out better than expected next Tuesday which will uplift crypto prices, believes the analyst.
The crypto trader and influencer, Dan Gambardello (@cryptorecruitr), tweeted his latest technical analysis for Bitcoin (BTC) and Cardano (ADA) this morning.
In his analysis, Gambardello starts by stating that BTC’s price broke below the consolidation trend line at around $22,100 which he highlighted in his previous technical analysis. However, he believes that the break below the trend line may be a fakeout, and added that there may be a pullback in BTC’s price in the coming days.
If BTC’s price is able to pull back to around the same level as the aforementioned trend line, then it will either face rejection or break through the line and target $24K-$25K according to the trader. Therefore, Gambardello stated that it may be best to wait for BTC’s price to break the trend line before traders enter into a long position for the crypto market leader.
On the other hand, if BTC’s price is rejected by the trend line, then the downside target is around $19K. The trader optimistically added that BTC’s price dropping to the $19K area may be the higher low that BTC’s price needs before entering into a rally and a subsequent bear market.
In terms of the Ethereum-killer Cardano (ADA), the trader has set his downside target for the altcoin’s price at $0.28 given that a bearish double-top chart pattern on ADA’s chart is currently playing out.
However, should BTC’s price break recover back to the $22,100 level, then ADA’s price will also recover to around the consolidation trend line at $0.34.
Gambardello did say that the markets are not out of the woods yet and says that traders and investors may want to brace for a 10-15% drop in the coming 4-5 days. Nonetheless, Gambardello remains optimistic and stated that next week may be a positive week for the crypto market.
He justifies this claim by mentioning that the U.S. CPI data may come out better than expected on March 14, 2023. Should this happen, stated the influencer, then the crypto market and the traditional financial market will receive a healthy injection of buy volume.
At press time, the price of ADA is down 1.61% over the last 24 hours according to CoinMarketCap. This 24-hour drop in ADA’s price has added to its negative weekly performance which now stands at -10.53% as a result. Currently, ADA is trading at $0.3178.
Technical indicators on ADA’s 4-hour chart are slightly bearish as the 9 EMA line remains below the 20 EMA line. In addition to this, the slower momentum oscillator, the Relative Strength Index (RSI) on ADA’s 4-hour chart is currently hovering around the oversold territory. The negative slope of the RSI line suggests that ADA’s price will continue to fall in the next 24 hours.
The crypto market leader’s price also printed a loss over the last 24 hours and is trading at $21,724.54 at press time following the 1.44% 24-hour drop. This has also dragged BTC’s weekly performance down to -7.18%.
Similar to ADA’s 4-hour chart, the 9 EMA line is trading below the 20 EMA line on BTC’s 4-hour chart. Currently, the 2 EMA lines are acting as strong resistance levels for BTC’s price.
Furthermore, the RSI indicator on BTC’s 4-hour chart is flagging bearish at press time with the RSI line currently in oversold territory and the slope of the RSI line being negative. This suggests that BTC’s price will either consolidate or continue to fall in the next 24 hours.
However, traders and investors may sell their crypto holding leading into the weekend. This has historically been the case, and should it happen again, the prices of BTC and ADA will continue to drop heading into the weekend.
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