Is Bitcoin in a Hidden Downtrend? Dogecoin Soars While Ethereum Struggles!

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As an analyst, I’ve observed that Bitcoin, having surpassed the $100,000 mark, has been consistently climbing. However, a closer look at the chart suggests a hidden bearish pattern might be emerging. Although it hasn’t shown bullish signals as of yet, it has managed to reach a new high point since its peak in late 2024. The most significant indicator pointing towards this possibility is the descending trendline on the daily chart.

Without a decisive breakthrough above the current resistance point, it’s unclear if Bitcoin is ready for a full-blown upward trend. To sustain its growth, Bitcoin needs to exceed its previous high of around $110,000. For now, its price fluctuations are ambiguous, and any drop below this level might bolster the concealed downtrend. Additionally, the volume pattern of Bitcoin adds to the uncertainty. It hasn’t reached the volumes seen during past peaks, even with a recent surge.

This implies that the current buying pressure might not be strong enough to push Bitcoin beyond its existing resistance level. Yet, Bitcoin’s persistence in staying above the 50 Exponential Moving Average (EMA) and maintaining its value around $100,000 keeps optimistic investors encouraged. These levels function as robust foundations, and a breakout remains possible provided that Bitcoin continues to stay above them.

As a crypto investor, I’m eagerly anticipating a significant shift in Bitcoin’s near future trajectory. If we manage to breach the $110,000 mark, it would suggest a resumption of bullish sentiment and a continuation of our upward trend. Conversely, should we fail to break above the current trendline and fall below $9,000, it could indicate a more extensive correction in the market.

Dogecoin‘s potential breakthrough

Approximately at $0.40, Dogecoin managed to surpass a notable resistance point, suggesting a renewed optimism in the market. Furthermore, it’s aiming to surmount the 50 EMA resistance, a significant technical hurdle that has restrained its price for quite some time now. In the past two attempts, Dogecoin has made efforts to rise above this barrier. Despite its promising uptrend, Dogecoin has yet to secure a position above this level, making the coming days pivotal in determining its future price trend.

If Dogecoin manages to surge past $0.40 and maintain its progress beyond the 50 Exponential Moving Average (EMA), it might potentially aim for a price range between $0.45 and $0.50. This optimistic view is further bolstered by the analysis of volume data, which shows an uptick in buying activity, a crucial factor for Dogecoin’s ongoing bullish trend. However, the market remains cautious as there might be a possible pullback to the support region around $0.35 if it fails to maintain its position above $0.40.

If the current resistance level is successfully breached, the ongoing bearish trend dating back to mid-December could be reversed. A powerful breakout would indicate a resurgence of bullish sentiment and potentially trigger a more significant upward movement. Conversely, if DOGE fails to hold its position above the resistance, bears might regain dominance, causing the price to fall towards $0.30 or even lower. In such a scenario, DOGE may enter a prolonged period of sideways price action.

Ethereum still suppressed

Despite a lack of positive signs suggesting quick growth, Ethereum continues to struggle within the market. It hasn’t shown any significant upward trend and has been stuck in a period of consolidation. Currently priced at around $3,740, it hasn’t managed to reclaim its previous highs. However, it briefly rallied after moving above the 200 EMA near $3,120, resulting in a temporary boost of support.

It’s tough for Ethereum to surpass the resistance levels around $3,557 and $3,800, which are approximately represented by the 50 Exponential Moving Average (EMA). The price has consistently failed to stay above these significant thresholds, suggesting a shortage of bullish energy. Moreover, the current volume suggests minimal buying interest, fostering bearish feelings. If Ethereum can’t overcome the 50 EMA and climb above $3,800, there’s an increased chance of a more substantial pullback.

In simple terms, the 200 Exponential Moving Average (EMA), which has acted as a strong defense for Ethereum so far, currently hovers near $3,120 – an important support level. If Ethereum falls below this point, further declines towards $2,900 or even lower might occur. However, if Ethereum manages to break above $3,800, it could rekindle bullish feelings, propelling Ethereum closer to the psychological milestone of $4,000 and potentially beyond.

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2025-01-18 03:05