Analyst Says Cardano Could Be Poised To Outpace Ethereum As ‘Reliable’ Indicator Flashes Bitcoin Bottom Signal
A popular cryptoanalyst offers insight on what may be on the horizon for two of the biggest digital assets.
In a new strategy session, the anonymous host of InvestAnswers tells his 443,000 YouTube subscribers that he has been eyeing the decentralized blockchain protocol Cardano (ADA) against top smart contract platform Ethereum (ETH).
“Everything is bleeding against Ethereum right now, but here the ADA/ETH pair is down 68% in one year. Sometimes it’s important to zoom out and see exactly what’s going on. It looks like it’s making a pretty solid bottom very near that 0.00025 level. That should kind of bottom out for Cardano.”
The analyst says it will be important to see what happens with Cardano’s upcoming Vasil hard fork, which was recently delayed from its initial June launch date.
“The pair swap here, the alternative if the hard fork for Cardano is successful and adoption returns, it would be a good time to basically flip your ETH into Cardano if it goes on a roll.”
At the time of writing, Cardano is down 3% and trading at $0.54 while Ethereum is down less than one percent and priced at $1,860. The ADA/ETH trading pair stands at 0.00029 ETH ($0.54).
The cryptoanalyst then uses the Puell Multiple to measure whether Bitcoin (BTC) has reached the bottom of the bear market. The calculation is determined by dividing the daily issuance value of BTC by a 365-day moving average of its daily issuance value.
The host shows a graph highlighting three previous Bitcoin bottoms in 2015, 2019 and 2020.
About the Puell Multiple, the host says,
“It has signaled all the major bottoms we had previously which correspond to blue, which is the Bitcoin price and the Puell multiple. This calculation again looks at the supply side of Bitcoin’s economy, i.e. Bitcoin miners and their earnings. You can see that this has been a very reliable bottom indicator in the past.”
Bitcoin is down 1.35% and is changing hands at $23,336.
I
Don’t Miss a Beat – Subscribe to get crypto email alerts delivered straight to your inbox
Check price action
Follow us on TwitterFacebook and Telegram
Surf The Daily Hodl Mix
 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making high-risk investments in Bitcoin, cryptocurrency or digital assets. Please note that your transfers and trades are at your own risk and any losses you incur are your responsibility. The Daily Hodl does not recommend the purchase or sale of cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured image: Shutterstock/Golden Wind/Mingirov Yuriy
