The price of bitcoin has managed to surpass a downward trendline which it failed to rise above on several occasions during 2018.
It has yet to be seen whether the price can close above this point.
A breakdown from here before the weekly closes above the trendline would be bearish while a close above would give more reason to have a bullish outlook for price prospects.
Analysis of the daily chart provides some indication that the price may break down from where it is currently trading.
The price is currently approaching an area of seller liquidity from $4100 to $4250.
Every time price has entered this territory since late November, the price has found selling pressure and broke down.
The last time the price tested this area was in late February.
The buying pressure, as measured by the RSI, was greater at this point than it is now.
The RSI in late February was approximately 76 while the RSI currently is about 64.
This increases the likelihood that the price will fail to overcome this area of seller liquidity on this occasion.
The price candles during the week consisted of both upward movements and Doji candles forming.
This shows some buying pressure driving price upward during the week but also periods of uncertainty from traders.
Doge has been exhibiting high amounts of uncertainty for price prospects with small-bodied candles and Doji candles forming since mid-December when the last significant move took place.
The price is trading close to the weekly 200 SMA which may be playing a factor in the consolidation we are seeing just above.
On the daily chart, the price has mainly been trading just above support at $0.002 with several Doji candles forming during the week of trading.
Any moves below the $0.002 level quickly found buying pressure to bring the price back above.
The daily MACD and RSI have been trading relatively flat showing no clear advantage to either buyers or sellers.
Recent research from Binance highlighted that doge has low levels of correlation with other major cryptocurrencies.
This means that a significant move from market leader bitcoin may do nothing to break the consolidation we are seeing in Doge.
- Bitcoin recorded both periods of increases and uncertainty during the weeks trading.
- The price has managed to rise above a trendline which has been significant in 2019, but the price is currently approaching an area of seller liquidity on low amounts of buying pressure which increases the possibility of a price decline taking place.
- Doge has been consolidating since mid-December and trades just above the weekly 200 SMA.
- The daily MACD and RSI trade relatively flat for Doge indicating no clear advantage to either buyers or sellers.