Closely followed trader and crypto analyst Benjamin Cowen says that he sees a threat that could foil Cardano’s (ADA) bullish setup.
In a new strategy session, Cowen tells his 497,000 YouTube subscribers that ADA’s bullish sentiment continues to build as the third-largest cryptocurrency prints a fresh all-time high of $2.58.
“For now, I think a lot of the hype is two things. Number one is smart contracts launching in a few weeks. That’s number one. I think there’s a lot of hype building into that. Number two, Bitcoin’s above the 20-week [simple moving average] and going sideways. So the path of least resistance for ADA is to go up.”
According to Cowen, the next price explosion for Cardano hinges on Bitcoin’s (BTC) ability to stay above a key level.
“The only thing now that you should be rooting for if you want to see ADA break through to say the $3 mark, the $4 mark, what do you want to see happen? What you want to see happen is you want to see Bitcoin just kind of hang out. Just have Bitcoin chill above the 20-week [simple moving average]. If we get it, then the path of least resistance for ADA is up.”
The crypto strategist says that he sees a threat that could potentially ruin the bullish rallies of both ADA and BTC.
“To understand what ADA’s doing, you need to go look at what Bitcoin’s doing. To get a better understanding of what Bitcoin’s doing, you need to go look at the US dollar. And the only reason, the only reason to be a little bit cautious, I would say, would be because the dollar is trying to break out…
If you want to see crypto move up, what you would like to see happen is you would like to see the dollar get rejected back down. So if the dollar gets rejected back down, then you’re going to see people continue to speculate on crypto…”
Cowen also says that he’s watching the dollar “like a hawk.” According to the crypto analyst, it will be difficult for Bitcoin to record a new all-time high if the US dollar breaks out.
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