Above: Cardano (ADAUSD) Chart
Well, Cardano finally dropped below the candlesticks – but it wasn’t due to price action, it was due to time. When the new daily candlestick appeared, the Lagging Span ‘slid’ to the right an below the candlestick above it. At the time of writing this article (1500 EST), Cardano is only down -2.36% for the day after dropping as much as -10.82%. It’s recovery from the daily low to the present value represents a +9.50% gain! I’m cautious about any big bear or bull move here because of one key piece of information: Cardano is trading inside it’s daily Kumo. There’s two things about trading in the Kumo that make me want to shun this chart for a while. First is the fact it’s even spending so much time inside the daily Cloud. Nearly all of the Ichimoku indicators are on top of one another and for whatever reason, Cardano wants to sit inside the worst place to be on an Ichimoku chart. Second, I affectionately call the Cloud ‘The Place Where Trading Accounts Go To Die’. The Cloud represents volatility, indecision and whipsaws. But it’s hard to not pay attention to Cardano’s chart because at any time it could be easily pushed above the Cloud or below the Cloud. The close of this daily candlestick is going to be very important in dictating the trade direction for the remainder of the week. Cardano is still weighted heavily to more downside pressure – but this is the cryptocurrency market – so who knows. Key levels I am watching are 1.20 and then 0.84 – 0.94. In order for me to be 100% bullish again, the Lagging Span needs to trade above the candlesticks again, which would mean it will need to trade near the $2.00 mark for the rest of the week and I just don’t see that happening.
Above: Bitcoin (BTCUSD) Chart
Oh man – Bitcoin is at a level where it could experience major collapse via flash crash. The key price level I am looking at is 32,250. That is near the very bottom of the current high volume node cluster in the volume profile. If that level fails to hold, then Bitcoin moves into a severe volume trough in the volume profile. There is a massive amount of open space between 32,000 and the next high volume node at 23,500. If you were a big player and could move the market, this would be the best opportunity to give hope to the retail bag holders that price are going back up and flirt with targeting 40k before pulling the rug out and returning to 32,250 and ultimately to 24,000. Bitcoin has had a technical break out below the descending triangle, but it will be interesting to see how traders react near the end of the trading day. Volume has certainly picked up but remains well below the volume from mid to late May. At the present, I wouldn’t be surprised to see Bitcoin move higher to test the daily Kijun-Sen at 40,500 – this would put Bitcoin against not juts the Kijun-Sen, but the upper bounds of the current…