$70,000 Breakthrough Eludes Bitcoin, What's Next? Shiba Inu (SHIB) Escapes Downtrend, But Will Dogecoin (DOGE) Breakthrough?

Bitcoin has experienced a setback, quickly reversing its direction and failing to cross the crucial $70,000 barrier. A wave of panic among investors has been caused by the recent transfer of funds from Silk Road, which some analysts are linking to this abrupt decline. Even though this relationship is purely hypothetical, it shows how sensitive the market is to big changes in Bitcoin.

Two new addresses received about 29,800 BTC, or roughly $2 billion, from a U.S. government-labeled address linked to the Silk Road seizure. Investors are worried about this significant fund movement, which has sparked rumors of a possible sell-off. The mere possibility of these funds being sold has caused fear and uncertainty in the market, even though it is unlikely that they will be. 

The mood of the market was beginning to improve prior to this abrupt turnabout. At $68,000, Bitcoin had been consolidating, indicating a possible breakout to higher levels. Positive signs were seen across a range of cryptocurrencies as the market as a whole began to steadily recover. 

Still, this recovery is now somewhat uncertain given the recent price action. In its current state, Bitcoin is unstable, trading at roughly $66,770. Bearish sentiment has emerged as a result of the inability to break through $70,000. The 50 EMA and 100 EMA, which are presently at $64,000 and $63,000, respectively, are important support levels to keep an eye on. 

Upward pressure might be redirected if these levels are held. Bitcoin's near future is still unknown. Despite the concerns raised by the Silk Road money transfer, it is important to take the larger market environment into account. If Bitcoin is able to hold its support levels and the positive sentiment returns, a market recovery may still be imminent. To determine the next course of action, investors should monitor trading volumes and general market trends.

Shiba Inu's breakout

With success at breaking out of a long-term downward trend, Shiba Inu has given its investors some hope. The meme coin broke out of its declining price channel, indicating that its bearish trajectory may be changing. This escape, though, was fleeting as the extremely low trading volumes and general market instability caused SHIB's price to decline once more.

Although the breakout from the descending channel first suggested a potential reversal, the subsequent price decline highlights a crucial problem: insufficient trading volume. Any upward momentum must be sustained by trading volume, and Shiba Inu is currently severely undersupplied. 

It is also challenging to sustain the breakout due to unfavorable general market conditions. Significant withdrawal by whales is another important factor impacting SHIB's performance. The departure of these big players has led to a substantial drop in volatility. 

Usually, whales bring trading activity and liquidity to the market; however their departure has created a hole that is difficult to fill. A major setback to SHIB's chances of building on its breakthrough has been this abandonment. Technically speaking, the price movements of Shiba Inu are still unstable.

While breaking out of the downtrend was a good thing, the fact that the breakout was not sustained because of low volume and unfavorable market conditions suggests that problems persist. Specifically, the recent lows within the descending channel are important support levels to keep an eye on. 

Dogecoin descends

Dogecoin is moving in a descending triangle pattern and is in a risky situation. If the price stays on its current trajectory, this pattern usually indicates a bearish outlook and raises the possibility of a breakdown. 

Everyone is thinking the same thing: can DOGE get enough support from buyers to go against the trend and overcome the resistance? Based on the given chart, DOGE is currently trading at approximately $0.13. It has been difficult for the price to rise above the descending triangle's upper boundary.

Related

Tue, 07/30/2024 - 12:26

Vitalik Buterin Unexpectedly Shifts Focus to Bitcoin, Here's Reason

Godfrey Benjamin

If the current trend persists, DOGE may experience a substantial price decline, as this pattern typically signifies that selling pressure outweighs buying interest. That being said, there is still hope. 

If buyers reenter the market and generate enough volume, Dogecoin could break through the triangle's upper resistance. A spike in volatility due to this discovery would probably raise the price. Depending on the state of the market, a successful breakout from this pattern might lead to DOGE testing higher resistance levels - possibly as high as $0.15.