The cryptocurrency world has been rocked by significant volatility this week, with Bitcoin and Dogecoin among the digital assets facing substantial price drops, according to analyses from Coinpedia on TradingView.
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Bitcoin Struggles Amid Broad Sell-Off
Bitcoin, the largest crypto by market cap, saw its price tumble by 6% on Tuesday, contributing to an 8% decrease over the entire week according to Coinpedia. This downward spiral was driven by a widespread sell-off frenzy, with sellers gaining control of Bitcoin’s short-term price trajectory. Despite the drop, Bitcoin found a brief respite, achieving a 1% intraday growth from the crucial $65,000 support level.
Notably, a daily net inflow of $40 million into US Bitcoin Spot ETFs hinted at potential for recovery. However, Bitcoin recently tested and rebounded from the $65,000 support level, with two consecutive bearish candles on the daily chart signaling a negative cycle.
The price approached the dynamic support at the 50-day EMA, aligning with the 23.60% Fibonacci level. Furthermore, a $357 million long liquidation event on Tuesday set a decidedly bearish tone.
While consolidation continued, a bullish flag pattern emerged, suggesting a possible trend continuation. Consequently, a rebound could propel prices beyond $75,000, with $100,000 being a post-halving target. Conversely, a drop below the 50D EMA might lead to testing the 38.20% Fibonacci level at $60,289.
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Show more +Dogecoin’s Volatile Ride Amid Market Turmoil
Dogecoin (DOGE), the popular meme coin, according to Coinpedia’s analysis, experienced a significant 17% plunge amid the broader crypto market crash, underscoring its volatility. However, the price fall has created a potential entry point for long-term investors and HODLers.
With two consecutive red candles, DOGE retested the $0.18 mark, reflecting bearish market sentiment. Nevertheless, a dragonfly candle at $0.1850 signaled a bullish attempt to counter the downward trend.
However, analysts cautioned that a dip in the ADX line and a potential negative crossover in the VI lines could signal further turbulence. The retest at $0.18 aligned with the 50% Fibonacci level, suggesting strong bullish support.
Signs pointed to a possible reversal, presenting an opportunity to “buy the dip” in anticipation of upcoming gains. If momentum regains, DOGE could target $0.2964, with immediate support at $0.18. Conversely, a continued fall below $0.18 could push DOGE to retest the 50D EMA at $0.1532.
Despite the drop lately, Dogecoin’s significant market cap has kept it in the spotlight as a leading meme coin, with speculations about DOGE reaching $1 highlighting the optimistic long-term sentiment among investors.
As of the latest update from CoinMarketCap, Bitcoin has seen a modest increase, trading at $66,722.80, which marks a 1.01% rise over the last 24 hours. On the other side of the spectrum, Dogecoin has experienced a slight decline, with its price falling to $0.184155, down by 2.50% in the same timeframe. This contrasting movement between two of the crypto market’s notable currencies highlights the ongoing volatility and nature of crypto investments, with BTC showing resilience and DOGE facing downward pressure amidst the market’s fluctuations.
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