Focus on the derivatives market

Once again, we are in a rebound phase, where the market is testing the tops and bottoms. In this context, the climate seems conducive to break the barrier of 45,000 USD in Bitcoin that can trigger a bullish move of more distance. A little higher, around 46,000 USD, we have the uptrend line that marks another important milestone to overcome.

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Today we are going to put the magnifying glass also on the intraday, to see a little of the structure of this last stretch of upward movement. In the 15-minute timeframe we can see how we have had important price impulses that have been decisive in the climb. But undoubtedly it has contributed the fact that we have not encountered significant resistance levels up to this level of 45,000 USD.

We must also remember that the technical figure that is occurring on the chart shows how we have overcome the last downward guideline and therefore the dynamics that we can see at this time is that of a bullish market.

From a technical point of view, the market dynamics are clear. There is a predisposition to break through resistance zones with a clear move to attack the 45,000 USD zone.

Beyond bitcoin…

But beyond the main asset of the market we can comment that regarding its immediate pursuer, Ethereum, the analysis indicates us a recovery of the correlation with Bitcoin. We have seen this week where the asset clearly broke that bearish dynamic and positioned itself in the same context as its big brother:

Attack, perforation and breakage of the bearish trend line indicating a change of context.

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Even the reaction has been more powerful and direct. We have gone from a scenario where the price was moving in a guideline below the main one, showing more weakness if possible, to a scenario where there is a sudden change in sentiment and a quick breakout movement that makes the price regain the 3,000 USD and consolidate what appears to be a change in trend.

We can appreciate the intensity of the movement in the intraday, with a powerful movement that is generating what appears to be solid short-term support zones.

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Putcall ratio as an indicator of market normalization

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All this context of a bullish turn is confirmed in the derivatives market with the normalization of a divergence situation that we have seen these months since the market reached its historical maximum.

We are now back to having values that are more in line with the bullish periods of the market, undoubtedly a sign to add to the previous ones.

Changes in the DEFI ecosystem?

The Decentralized Finance ecosystem is no stranger to all this market movement and has regained the upward direction, but with changes with respect to the leadership in this movement. 

We can see how during this week we can see assets that remained in a discreet second plane have made a significant leap to the forefront of market rises. 

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Cardano awakens from its lethargy

Thus, Cardano has seen its price rise by 35.50% this week, leaving behind the rest of the tokens and marking an important price breakout from resistance zones. We can see on the hourly chart how the movement has allowed it to break the past bearish dynamics, and also break the support at 1,048 USD.

We will now see how it performs the consolidation of this movement. Attention to the pullback in which it would be desirable not to lose this level of the support zone.

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Important support in Cardano (ADA) at the level of 1,048 USD

The 1H timeframe allows us to better appreciate this movement. Let’s see how far this movement goes

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In parallel to the market, we see how Coinbase has moved in recent hours to offer staking in Cardano, possibly a way to attract liquidity to encourage trading at a time when there are notable market movements.

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Quarterly derivatives closing

In relation to Cardano, we must not forget that this Friday is the quarterly derivatives close, and we had important positions in Cardano. That is why we must be cautious with the movement that we have seen, which could be caused by an increase in the demand for the asset from the derivatives market.

We remain moderately optimistic

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Macro market indicators show an undeniable improvement in investor sentiment. We are entering a clearly positive dynamic that should be confirmed from this macro point of view with values above 60 points in our ATH indicator.

Historically, whenever we have seen values above 60 points in the indicator, there have been significant upward movements.

But, remember….

Always DYOR