Bitcoin (BTC) New Year Rally Ended? Ethereum (ETH) Crucial Bearish Pattern, Dogecoin (DOGE): Down Even More

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As an analyst with over two decades of experience in the financial markets, I’ve seen my fair share of bull and bear runs. The recent developments in Bitcoin, Ethereum, and Dogecoin have been intriguing to say the least.

The upward surge of Bitcoin during the New Year has slowed down, sparking doubts about whether its upward momentum could be waning. As per the provided graph, Bitcoin is currently being traded at $104,899, representing a 1.21% decline following a slight pullback from reaching $106,214. Despite this, the general trend remains bullish, but signs of exhaustion are emerging. Notably, the chart suggests that Bitcoin closely adheres to its upward trendline.

Due to Bitcoin currently trading above crucial resistance zones, its upward trend that began in late October remains robust. Significantly, the 50 Exponential Moving Average (EMA) has been a reliable source of dynamic support. If selling pressure increases, the $98,400 and $97,500 levels might serve as protective barriers. It’s also essential to keep an eye on trading volume. A potential sign that bullish momentum is waning could be a decrease in buying activity over recent sessions.

If Bitcoin surpasses $106,000, it might attract a surge of new buyers. However, if this breakout isn’t followed by further growth, it could indicate a temporary drop instead of a full reversal. Currently, Bitcoin’s immediate direction is largely influenced by its capacity to maintain itself above the trendline. The nearest strong support lies around $90,000. If this level is breached, there might be potential for additional falls.

Over the coming time, it’s expected that Bitcoin will maintain its bullish position. During prolonged upward movements, small corrections like the one we’re seeing now are common. The overall trend remains positive. For the rally to continue climbing, Bitcoin needs to definitively break through its previous high by closing above it. If this doesn’t occur, the market could relax and move into a longer period of consolidation.

Ethereum‘s weakness

As a crypto investor, I’ve noticed that Ethereum seems to be showing some signs of weakness lately. After reaching a local peak close to $4,100, it hasn’t been able to maintain its momentum. Currently, the price has dipped 0.69% to $3,867 following a minor pullback. This decline has sparked concerns about the possibility of a bearish trend emerging on Ethereum’s chart.

First signs of a potential downturn are appearing as Ethereum struggles to stay above its 20-day Exponential Moving Average (EMA), a significant short-term support currently situated at approximately $3,707. This change comes after several weeks of strong upward momentum. The 50 EMA, positioned near $3,355, serves as the next critical support level if Ethereum fails to maintain its position above the current one.

If the value drops below this level, it could signal a shift in market sentiment, potentially driving Ethereum towards the significant $3,000 price point. Additionally, there’s a concern about the reduced trading volume. Despite a surge in November, recent activity suggests that buying interest is dwindling.

It appears that the buying enthusiasm for ETH might be decreasing, as suggested by the weakening demand, which could lead to more selling activity. On its price chart, there’s a growing possibility of a bearish trend emerging, indicated by a developing divergence in Ethereum’s price movement. The Relative Strength Index (RSI), a common indicator, is showing signs of slowing down around 63, a level often associated with a decline in bullish energy, despite the prices having recently hit a local peak.

If the Relative Strength Index (RSI) continues to drop, it might signal a stronger downward trend for Ethereum. However, its long-term upward trend remains intact as long as it stays above significant support points. For investors, keeping an eye on the $3,707 and $3,355 support areas is crucial, as a rebound from these levels could spark bullish sentiment and potentially set the stage for recovery.

Dogecoin‘s decline

As a crypto investor, I’ve noticed that Dogecoin’s price continues to dip, struggling to maintain crucial resistance points. At the moment, it’s trading at approximately $0.386, marking a decrease of around 2.04% over the past day. The technical perspective remains concerning, with the ascending channel – which previously served as a significant support during Dogecoin’s recent surge – showing signs of collapse in its current price movements.

The area where $0.45 used to be has turned into robust resistance, as it failed to maintain its momentum. Dogecoin might be headed towards its 50-day Exponential Moving Average (EMA), currently at $0.35, due to this price drop. It’s worrying that the asset is already testing this level so swiftly following its surge, despite providing solid technical support.

 

The reduction in trading volume during this pullback underscores the diminishing interest of buyers, making the downtrend even more prominent. Since there’s not a lot of appetite for Dogecoin among investors at the moment, the bulls are hesitant to step in, potentially leading to further drops. If the 50 Exponential Moving Average (EMA) doesn’t manage to hold, the $0.28 level will be an essential line of defense.

If the price falls below this point, it could lead to a more pronounced drop towards $0.21, a level not seen since November’s significant breakout. At present, Dogecoin (DOGE) isn’t extremely oversold, but its Relative Strength Index (RSI) reading of 56 suggests that the downward trend is gaining strength. If the RSI continues to decrease, it might suggest a dominant bearish trend in the market.

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2024-12-19 03:09