ADA may benefit from consolidation by BTC, bullish in short term
A quick followup look at the price of ADA right now and how it compares to the movements in Dec 2020, to which we've been comparing the current set of market conditions. In particular, we see that ADA went on a run once BTC decided to move horizontally in Dec 2020, after a period where BTC went up and ADA consolidated around the 10D and 20D moving averages.
We now see BTC trapped between the 10D and 20D moving averages, which is good reason for us to think that the price of BTC might move horizontally once again in the next few days, and if history is any indication then this might be good for the price of ADA.
I mentioned earlier in the video that the only reason the channel might breakdown is a strong correction by Bitcoin. This is not strictly true, and I added to that at the end of the video where I mentioned that the channel is (in my opinion) a result of the hype and anticipation surrounding the staggered rollout of Goguen, and a delay to the Alonzo hardfork might be a second reason why the parallel channel (linear in logarithmic space, which means it's exponential in linear space) would break down.
As with many crypto projects that are incomplete and under construction in a mostly centralised manner, any investment in these coins/tokens corresponds to a judgement of faith in the developers' ability to deliver on their promises. Whether you trust IOHK and the Cardano foundation is your own decision. My background is computer science and physics so naturally I like the technology behind Cardano and their peer review-based approach to development, but it could be argued that the real world doesn't work the way software engineers and academics like to think it does, with social phenomena, institutions and market phenomena impacting adoption and ultimate success. Don't invest because someone else likes Cardano, invest because you like Cardano. Please do your own research!
We now see BTC trapped between the 10D and 20D moving averages, which is good reason for us to think that the price of BTC might move horizontally once again in the next few days, and if history is any indication then this might be good for the price of ADA.
I mentioned earlier in the video that the only reason the channel might breakdown is a strong correction by Bitcoin. This is not strictly true, and I added to that at the end of the video where I mentioned that the channel is (in my opinion) a result of the hype and anticipation surrounding the staggered rollout of Goguen, and a delay to the Alonzo hardfork might be a second reason why the parallel channel (linear in logarithmic space, which means it's exponential in linear space) would break down.
As with many crypto projects that are incomplete and under construction in a mostly centralised manner, any investment in these coins/tokens corresponds to a judgement of faith in the developers' ability to deliver on their promises. Whether you trust IOHK and the Cardano foundation is your own decision. My background is computer science and physics so naturally I like the technology behind Cardano and their peer review-based approach to development, but it could be argued that the real world doesn't work the way software engineers and academics like to think it does, with social phenomena, institutions and market phenomena impacting adoption and ultimate success. Don't invest because someone else likes Cardano, invest because you like Cardano. Please do your own research!