Bitcoin (BTC) Back at ATH: Next Target, Dogecoin (DOGE) Volume Disappears, Ethereum (ETH) Hits $4,000, But There’s a Catch

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As a seasoned crypto investor with a decade of market experience under my belt, I must say that the recent surge of Bitcoin to a new all-time high of $106,000 is nothing short of exhilarating. I remember when I first bought my first Bitcoins back in 2013 for less than a dollar, and now here we are!

The top dog in the market has staged a powerful return, with Bitcoin reaching an unprecedented peak of $106,000. Robust market foundations and growing institutional attention have fueled optimism among investors, as demonstrated by this surge – a clear indication of Bitcoin’s persistent growth trajectory.

With Bitcoin’s open interest reaching an unprecedented $67 billion, the surge to $106,000 suggests a significant rise in investor enthusiasm for derivatives trading. Since leveraged positions amplify both positive and negative price swings, high open interest can lead to increased market volatility. However, it often signifies robust speculative activity.

After the current all-time high, it’s likely that a strong resistance level for Bitcoin will be found approximately at $110,000. This level could experience substantial selling pressure as investors look to cash out their profits. If Bitcoin maintains its bullish trend and surpasses $110,000, the next goal might shift toward $120,000, boosted by increasing institutional investments and widespread use.

As a researcher, I find that the Bitcoin price has robust backing at approximately $98,000, a level where historic support has been consistently upheld by buyers. In case of a momentary pullback, the 50 Exponential Moving Average (EMA) on the daily chart, currently around $97,000, would serve as an additional cushion for Bitcoin. Notably, the broader market has seen a surge since Bitcoin reclaimed its all-time high, instilling optimism among altcoin investors.

Historically, when Bitcoin reaches new record highs, there’s a tendency for investors to seek higher yields by moving their funds into other investments. This pattern could repeat itself, with Ethereum and other major altcoins potentially benefiting from the positive sentiment towards Bitcoin.

Dogecoin final retrace

As a crypto investor, I’ve noticed that Dogecoin’s trading volume and volatility have taken a dip lately, indicating a sluggish momentum in its price action. Even though it’s holding steady at $0.39, DOGE has hit a roadblock just shy of the upper resistance level at $0.42 after an impressive run of gains. The decreasing investor interest and hesitation to take on larger positions, often leading to stagnant price movements, seems to be evident in the chart’s dwindling volume.

Furthermore, there’s less price fluctuation suggesting a more limited trading band, potentially signaling that DOGE is readying for its next significant shift by gathering strength. Despite recent unsuccessful attempts to challenge the upper limit, the asset remains within an ascending parallel channel. A surge in buying activity and rising bullish expectations are crucial for Dogecoin to overcome the $0.42 barrier and make a substantial upward leap.

If Dogecoin (DOGE) fails to hold its current support, there’s a possibility that its price might fall towards the $0.34 region, which serves as a crucial support level. The 50 Exponential Moving Average (EMA), often monitored for its role during market corrections, aligns with this area. If the price falls below this zone, it may be dragged towards the $0.27 level, where the 200 EMA provides more enduring support. This could potentially trigger more selling, causing further price declines.

Given the present quiet market situation, investors should practice carefulness. The overall sentiment of the market, along with potential volume changes in the near future, will likely influence price jumps in either direction. Could a surge towards $0.50, an important psychological level that traders are closely monitoring, occur if Dogecoin manages to regain its momentum and exceed $0.42?

Ethereum pushes again

As Ethereum nears the $4,000 level, it’s clear that it possesses a strong resilience and determination. However, some psychological barriers in pricing caused a minor drop. This dip signifies that Ethereum is encountering selling pressure since buyers are uncertain about sustaining the upward momentum above this significant level, and traders are cashing out their profits. Despite this, the price consistently remains above its key moving averages, suggesting that Ethereum remains generally bullish on the chart.

The fact that the 26 EMA is still functioning as dynamic support suggests that Ethereum is still rising. Even so, the volume profile indicates a drop in buying pressure, indicating a lack of conviction to make a sharp move above $4,000. The recent overextended rallies in which Ethereum saw steady gains without a notable correction are primarily to blame for this retracement. 

Currently testing the resistance level, traders might be pausing to reassess. If Ethereum fails to surpass $4,000, it could potentially pull back towards the 50 Exponential Moving Average (EMA), which serves as the closest support zone at approximately $3,677. The direction Ethereum takes next – whether it will maintain its upward trend or experience more consolidation – will largely depend on this critical level.

Should Ethereum surpass the $4,000 mark with increased trading activity, it could potentially aim for prices ranging from $4,200 to $4,500, where its momentum may accelerate further. However, a potential pullback towards the $3,300 region, a robust support area that aligns with the 200 EMA, might occur if there’s a downward break below $3,677.

Even though Ethereum’s current price movements are positive, a significant increase in buying activity is necessary for a clear breakout to occur. It’s essential for investors to observe if the bulls can hold their ground under potential pressure over the next few days and pay attention to the $4,000 resistance level. Despite its recent upward trend, Ethereum’s recovery remains in its early stages until further notice.

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2024-12-17 03:16