Bitcoin (BTC): $100,000 Not Forgotten, Dogecoin (DOGE) Loses It, Shiba Inu’s (SHIB) Catastrophic Drop: What’s Next?

by

As a seasoned crypto investor with battle scars from the 2017 bull run and the 2018 bear market, I’ve learned to navigate the rollercoaster ride that is the cryptocurrency market. The recent price action of Bitcoin has left me feeling like a spectator at a boxing match – one step forward, two steps back.

The recent price movement of Bitcoin emphasizes how difficult it is to reach the elusive $100,000 threshold. Substantial market liquidations totaling $1.58 billion over the last day have prevented Bitcoin from sustaining momentum above this crucial psychological threshold. The asset’s short-term corrections continue to hold it back despite its still-promising long-term prospects. 

A significant contributor to this recent downturn was the numerous liquidations, particularly in Ethereum and Bitcoin. Positions with high levels of borrowed funds, or leverage, have forced the market to correct itself. This has led to a tough situation for further price increases due to the intense selling from highly leveraged buyers. The $172 million worth of Bitcoin liquidations alone demonstrates this trend. This instance underscores the risks associated with excessive leverage in cryptocurrency markets, as seen in such liquidation chains.

In simpler terms, Bitcoin‘s price is being supported at a significant level (26 EMA), which often acts as a bounce-back point during market downturns. However, its failure to stay above $100,000 or retest this level suggests that investors are not very optimistic about its future growth. The current trading volume is lower compared to the previous strong upward trends, suggesting less enthusiasm among buyers.

Despite the current challenges, Bitcoin’s fundamental structure remains optimistic. Instead of signaling an immediate reversal, the emerging consolidation pattern suggests that Bitcoin needs a pause. If needed, the significant support levels at $94,000 and $85,000 could provide a strong base for a more substantial rebound. The main hurdle on the upward trend is still $100,000; overcoming this barrier might fuel fresh momentum.

Despite a delay in reaching $100,000, that goal remains active on the horizon. The present adjustment phase in the Bitcoin market provides an opportunity for recalibration and establishing a more robust foundation, as it’s a typical step within the broader market cycle for Bitcoin. Patience will be key as Bitcoin progresses through this important stage.

Dogecoin getting hit

Dogecoin has experienced a significant downfall, halting its climb and plummeting out of its ascending trading pattern. This event caused DOGE to dip below the vital $0.40 threshold, which previously provided both technical and psychological support. With bearish forces mounting, the cryptocurrency is currently hovering around $0.39, signaling a shift in investor sentiment.

It seems like the breakdown of the rising trend line for Dogecoin indicates that its bullish surge might be slowing down, at least for now. Moreover, the pattern of trades suggests decreasing enthusiasm, as the price increase isn’t being supported by sufficient trading activity to maintain further growth. This downward trend aligns with the broader correction in the crypto market, where declines across several assets have been triggered by overextended positions and investors cashing out their profits.

Looking at technical analysis, it’s worth noting that $0.31 and $0.27 could serve as potential support points for Dogecoin. It’s crucial for the coin to hold these levels to minimize further losses and potentially regain strength. Before aiming for higher goals such as $0.45 or even $0.50, any recovery attempts should first surpass the current resistance at $0.40.

Dogecoin’s recent behavior indicates it’s susceptible to changes in investor feelings and speculative trading. Previous major surges were often sparked by its community-based character, but given the present situation, it’s important to exercise caution. The uncertain future of DOGE is further complicated by the need for a broader market correction.

In the present situation, it’s advisable for Dogecoin traders and holders to closely monitor significant support and resistance points. If the price falls below $0.31, there might be a more significant drop, but if it surges above $0.40, it could revive bullish enthusiasm. As always, dealing with this popular meme coin’s unpredictability will necessitate patience and a clear strategy.

Shiba Inu breaches major level

Due to a significant drop in price, Shiba Inu has broken through crucial resistance points, entering a potentially hazardous period. Previously showing positive momentum, this popular meme token is now experiencing increased downward pressure, pushing it towards key areas of defense.

At present, Shiba Inu (SHIB) is roughly priced at $0.00002648, and its struggle to hold onto recent peak values highlights increasing unease among investors. The chart reveals a clear breakdown of the consolidation pattern we’ve been witnessing, suggesting a waning momentum. It’s worth mentioning that SHIB has dipped below $0.00002700 – a significant support level that previously acted as a fortress for bullish activity. This dip raises the prospect of further pressure on the downside if the bulls don’t regain control promptly.

It appears that Shiba Inu (SHIB) could face increased risk due to a decrease in buying interest as suggested by volume analysis. This trend could lead to higher selling pressure if it continues. Key support levels to watch in this scenario are $0.00002430 and $0.00002200. If these levels are broken, the downtrend might become more intense, potentially even reaching the $0.00002000 mark. However, it’s important to note that Shiba Inu still has a chance for recovery.

Following substantial improvements, the asset has a history of swift recovery, often fueled by speculative market activity and buzz within its community. To regain bullish confidence, SHIB should surpass $0.00002800 and maintain an upward trend, supported by increasing trading volume.

Read More

2024-12-11 03:20