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Dogecoin

Trading Range Getting Extremely Tight for Dogecoin – Breakout in DOGE/USD Soon?

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Dogecoin turned extremely bullish for about a month in April and May, surging from around $0.05 until $0.74. That was very impressive for this new cryptocurrency, which brought to life the Shiba Inu coin as a response to Dogecoin. Although, since May 8, the situation in Dogecoin has been very disappointing and depressing for buyers.

DOGE/USD reversed down in the second week of May, although this cryptocurrency was finding some form of support at the 50 SMA (yellow) on the daily chart until the end of June and we saw a bounce from there. But, the 20 SMA (gray) which was providing support during the bullish trend in spring, now turned into resistance, confirming that the trend had shifted to bearish.

The bearish trend resumed after the rejection at the 20 daily SMA, and the 50 SMA and the 100 SMA (green) were broken. As a result, this cryptocurrency continued down, making lower lows in June and again in July. That showed that the situation in Dogecoin was really bad.

DOGE/USD

But the 200 SMA (purple) held as support on this time-frame chart despite being pierced, although we know that cryptos are very volatile, so don’t expect the price to respect these levels exactly to the pip. This moving average has been holding as support, while pushing the lows higher recently, but only marginally.

On the other hand, the highs have been getting lower as well, with the 50 SMA acting as resistance now and pushing the price down. So, the range is getting extremely tight for this DOGE/USD and a breakout is expected soon. The price action points to a bearish breakout, although if the sentiment in the crypto market continues to improve, we might see a surge higher as well. We might try to trade the breakout, selling if the 200 SMA gets broken or buying if the 50 SMA gets broken to the upside, which you can follow on our live forex signals page.



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Bitcoin price seeks higher low as trader forecasts $45K breakout within weeks

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Bitcoin (BTC) traded steadily on Tuesday after a surge above $40,000 resulted in higher levels broadly holding.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

All eyes on Bitcoin higher lows

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hovering near $37,000, around 8.8% below the peak of Monday’s gains.

Its first trip above $40,000 in six weeks, Bitcoin price action is now attempting to consolidate and form support at a higher low, Cointelegraph contributor Michaël van de Poppe said.

“Bitcoin rejects at the range high, which isn’t strange,” he explained in a Twitter update Tuesday.

“The market has made a new higher high and is in search of a higher low. The levels that I’m watching are $34,500–35,800 and the area around $32,500.”

A look at buy and sell levels on major exchange Binance confirmed the significance of those price points, with buyer support significantly in evidence only below $36,000. Sellers, on the other hand, remained clustered at $40,000 and above.

BTC/USD buy and sell levels (Binance) as of July 27. Source: Material Indicators/Twitter

The area immediately after $40,000 remains a decisive hurdle to overcome for Bitcoin bulls, with analysts arguing that doing so would unleash the bull market continuation that so many continue to wait for.

“Did people really expect 45-48k in one day?” popular trader Pentoshi reasoned.

“You broke the downtrend on high volume, you broke back into the range and made a HH on the daily. You teleported to resistance, it could take 2 or 3x to break it but that’s coming in the next weeks imo. Dips are for buying.” 

That scenario would place BTC/USD on track to reach $47,000 in August, the minimum — if controversial — monthly close predicted by stock-to-flow model creator PlanB.

Trader: “Most” altcoins have bottomed

Bitcoin’s comedown from local highs, meanwhile, spelled problems for altcoins.

Related: Price analysis 7/26: BTC, ETH, BNB, ADA, XRP, DOGE, DOT, UNI, BCH, LTC

Ether (ETH), the largest altcoin by market capitalization, dipped 11% following a copycat move to highs of its own at $2,432 on Bitstamp.

ETH/USD 1-hour candle chart (Bitstamp). Source: TradingView

Many major altcoins fared likewise, with 24-hour losses of 10% or more not uncommon at the time of writing.

“The great part is that altcoins are following suit with Bitcoin and will most likely run towards their other side of the range too,” van de Poppe nonetheless added in a hopeful forecast, repeating previous conviction about the altcoin market.

“This means 80–150% run from the lows. I think most of them are bottomed.”