Bitcoin Price Analysis:
Prices may be at a pivotal point in the cryptocurrency market.
A big question on the mind of many analysts is whether the bottom is in?
Price increases for the market leader Bitcoin early this week made it look likely that it was.
However, declines recorded on Wednesday and Thursday reversed the increases recorded last week and brought into question whether Bitcoin can continue to hold valuations above $5000.
The drops on Wednesday and Thursday were preceded by a golden cross forming on the daily chart where the 50 SMA crosses the 200 SMA to the upside.
A golden cross is considered an extremely bullish signal by most analysts, but a sharp reversal in this case followed the signal.
Prices may have been overextended.
A double bearish divergence between the price and RSI recorded on the daily chart indicates that the levels of buying pressure were not corresponding with the magnitude of price increases.
Momentum is starting to shift back towards the sellers with both the daily MACD and RSI decreasing.
The price has dropped to test support at $5038, a level which provided support prior to the price increases last week.
A Doji candle formed yesterday, and another Doji is forming today showing that price has reached a level where traders are highly uncertain of future price prospects.
Dogecoin Price Analysis:
The price of Dogecoin has also been decreasing with higher amounts of selling pressure being recorded.
After multiple tests of $0.00268 taking place last week, the price broke below this week and dropped close to $0.0023.
$0.0023 was a former area of resistance for Dogecoin and will likely act as an area of support in the event of a drop.
Both the RSI and MACD on the daily chart have also been decreasing reflecting the higher levels of selling pressure currently in the market.
The price of Dogecoin has since risen back up to test $0.00268 as resistance.
With multiple tests of a resistance level weakening a level, the odds would typically be increased for Dogecoin breaking above.
However, with high amounts of selling pressure being recorded on the daily chart, it seems more likely that the price will drop back to test $0.0023 as support.
- Bitcoin reverses all of last weeks increases after declines recorded on Wednesday and Thursday.
- Dogecoin has dropped below support at $0.00268 and has since increased to test this level as resistance.
- Selling pressure is high in both bitcoin and doge with the RSI and MACD declining on the daily charts for both.