Bitcoin (BTC) Can’t Break $100,000, Dogecoin (DOGE) Can Sniff $0.5, Did Shiba Inu (SHIB) Form Hidden Cup and Handle Pattern?

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As a seasoned researcher with over a decade of experience in the volatile world of cryptocurrencies, I’ve seen my fair share of market cycles – from Bitcoin’s meteoric rise to Dogecoin’s meme-powered surges. While the recent price action of both Bitcoin and Dogecoin is intriguing, it’s important not to get too carried away by the excitement or frustration.

Bitcoin’s persistent effort to surpass the symbolic $100,000 mark has left investors feeling a mix of exhilaration and frustration. Despite numerous attempts, this significant level has proven to be both a psychological and technical hurdle due to strong market factors working against its upward trend. After an impressive surge from $25,000 earlier in the year, Bitcoin has been experiencing consolidation near the $100,000 mark, as suggested by a study of its price chart.

As a crypto investor, I’ve noticed the current market stagnation urging us to exercise caution, but the surge of hope remains undiminished. The relentless selling pressure from whales has caused this temporary pause in Bitcoin’s price rise. The downward push on Bitcoin’s value is largely due to these large-scale investors offloading their holdings near the $100,000 mark. This trend aligns with the recent surge in sell orders, making it challenging for the asset to build enough momentum to surmount the resistance.

In essence, the price fluctuations resemble patterns observed in previous market phases. Bitcoin‘s past trends suggest that substantial corrections and consolidations often occur close to significant round numbers before further shifts. The $100,000 mark serves as a gauge for the asset’s strength and market sentiment. Moreover, the reluctance of early investors to buy more could be hindering the price increase due to their desire to sell profits.

As a crypto investor, I’ve seen both long-term holders and short-term traders capitalizing on their gains as Bitcoin surged over 300% from its yearly lows, which has escalated the selling trend. For now, key support levels at $84,000 and $93,000 remain vital. Although breaching $100,000 could spark renewed buying interest, falling below these markers might trigger a major correction. In essence, Bitcoin’s resilience against selling pressure and the reemergence of bullish sentiments will decide if we reach and surpass $100,000. From past experiences, it seems that Bitcoin thrives amidst adversity.

Dogecoin‘s suspicious ascent

retail investors and large financial entities have begun paying attention to Dogecoin, as it approaches the significant price point of $0.5. However, the chart suggests as much encouragement as caution. The current trading pattern of DOGE within a distinctly outlined ascending channel signifies both potential weakness and bullish energy.

As an analyst, I find myself observing a positive outlook in the Dogecoin market, given its consistent formation of higher highs and higher lows within an ascending channel. This trend suggests a promising upward trajectory. However, it’s crucial to keep an eye on potential issues that may surface if this ascending channel experiences a breakdown below its lower boundary.

If Dogecoin (DOGE) falls below $0.38, it could indicate a significant price drop as this level serves as a key support. Such a breach might suggest a shift from the current uptrend to a downtrend, potentially leading to a more substantial correction. Conversely, if DOGE manages to break above its upper channel boundary, we could see prices soaring beyond $0.5.

It’s likely that this could rekindle buying enthusiasm, further boosting its rise. For Dogecoin to achieve this, it needs increased trading activity and sustained optimistic market sentiment, which have shown volatility in the recent market sessions.

Despite DOGE currently being within a generally stable range according to Relative Strength Index (RSI), a potential dip might follow if the asset moves into overbought territory. Moreover, there’s been a slight decrease in trading activity, which serves as a warning signal for optimistic investors. If confirmed volume doesn’t materialize, any price surge could be brief.

Shiba Inu‘s hidden pattern

In this context, the rounded base that developed from mid-June to late-October seems to represent the ‘cup’ part of the classic pattern we’re discussing. The brief consolidation period around early November possibly corresponds to the ‘handle’. Although this example doesn’t perfectly fit the textbook definition, it shares similar characteristics with traditional patterns. If validated, Shiba Inu (SHIB) could potentially experience a bullish breakout leading to higher price points.

Currently, SHIB is hovering slightly under its latest local peaks, around $0.00003179. For a bullish outlook to materialize, Shiba Inu needs to surmount the immediate resistance at $0.00003500. Once this hurdle is cleared, the price could potentially advance towards its next objective, which is $0.00004000, a significant psychological threshold for the asset. On the downside, SHIB finds solid support at $0.00002700 and the lower end of this range.

If the price falls below the current level, the bullish trend could be disrupted and a potential drop may follow. This level at $0.00002200 was where consolidation occurred previously, marking it as a crucial support point. However, for the cup and handle pattern to be confirmed, Shiba Inu (SHIB) needs a significant increase in trading volume. This has been relatively low in recent transactions. Whether the breakout maintains its momentum or risks becoming a false signal will hinge on this increased volume.

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2024-12-09 03:10