DailyFX analyst Tammy Da Costa explained in an interview that she expects better performance from major cryptocurrencies such as Bitcoin (BTC), Cardano (ADA), and Ethereum (ETH) and Dogecoin (DOGE). As Kriptokoin.com, we convey the views and analyzes of the famous analyst.
Cryptocurrencies suffered a lot due to these two events
Since the beginning of the year, the two largest cryptocurrencies by market capitalization, Bitcoin (BTC) are about 28 percent and Ethereum (ETH) is 50 percent. It fell by .5. Also, Bitcoin has lost about 10 percent in price over the past week. Similar statistics apply to Ethereum. Both cryptocurrencies are down between 35 percent and 40 percent from their all-time highs set last fall. Analyst Da Costa said that enthusiasm for high-risk assets such as cryptocurrencies has been damaged by two major events:
The FED has aggressively tightened its monetary policies to curb inflation, making investors less prone to speculation. . The war that broke out between Russia and Ukraine increased the concerns of the global economic slowdown. Interest rates may be rising, but they’re still near all-time lows. In the blink of an eye, Ukraine was able to raise money for its war effort using real-world use cases of cryptocurrencies.
Da Costa also said that cryptocurrencies haven’t dropped much so far given the plight of US tech stocks and other risk assets. “We still saw a certain amount of risk appetite despite the increase in geopolitical risks,” Da Costa said. The analyst continued:
If we see the tension of the war lessen and inflation fall, then there is a chance that risk appetite will increase which will support the crypto market.
Price analysis for Bitcoin and Ethereum
The history of being affected by technical factors such as high volatility, support and resistance levels makes trading Bitcoin and Ethereum attractive, although it is certainly risky to do so. However, Da Costa shared key levels where Bitcoin and Ethereum will bounce higher or rebound lower. Da Costa’s charts suggest that Bitcoin will remain in a relatively narrow trading range for the remainder of 2022. Currently trading at around $38,000, BTC could realistically climb around 40 percent from current levels to $53,000. But he said it will struggle hard to surpass $69,000 and set an all-time high this year. Da Costa added that the important Fibonacci level to watch is $53,600 and the level is related to where Bitcoin peaked in early December. Also, the analyst said that before Bitcoin rallied to $50,000, it had to surpass the psychological level of $44,000.
Da Costa said that the negative scenario for Bitcoin is to fall below $38,000 and fail to hold at $32,000. The analyst said that this will activate the 2021 low of $ 28,800. However, Da Costa thinks Bitcoin probably won’t drop more than $22,000 in 2022. The analyst noted that Ethereum is also traded in a “very narrow range”, noting that it is the second largest cryptocurrency in the world. Da Costa also revealed that if Ethereum turns bullish, it can break its early April high of $3,581 and then retest the $3,900 it last hit in January. The analyst added that the next stop will be $4,000.
Da Costa said the bearish scenario for ethereum is to test the key Fibonacci levels of $2,800 and $2,400. However, he said that unlike Bitcoin’s established protocol, Ethereum will rise slightly more than Bitcoin in the long run as the blockchain network continues to evolve. According to the analyst, Bitcoin and Ethereum could also rise significantly from current levels. But Da Costa’s price predictions also show how risky the space is still. Also, Da Costa said that the huge price targets that suggest the two cryptocurrencies could double or triple are “unrealistic” given how competitive the crypto space has become. There are a number of other cryptocurrencies and blockchain continues to evolve. So I think this will pose a threat to both Bitcoin and Ethereum.
Dogecoin (DOGE and Cardano (ADA)
Da Costa announced that it follows BTC and ETH, as well as DOGE and ADA. The famous analyst said about Cardano :
It’s also a blockchain that can reach a wider market, because their goal is also to go to Africa, actually helping people who don’t have access to the internet or what we take for granted, so I believe ADA will rise.
cryptocurrency DOGE, which originated as a joke in 2013, was part of the meme coin craze of early 2021. After a boom with the strong community behind it, DOGE has In May, it fell nearly 80 percent from its all-time high, with DOGE peaking just before its biggest backer, Tesla and SpaceX CEO Elon Musk, joined Saturday Night Live. Purchasing DOGE has been on the rise since the beginning of its campaign. DOGE rose nearly 28 percent in early April as the Twitter news surfaced, as a result of intense interest from investors who thought Musk could use Dogecoin for tips. Da Costa said this is a story worth following and continued:
Since he’s such a big DOGE fan, I think there’s a possibility that can be picked up. But it all also depends on the Twitter offering and what will come out.
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