Bitcoin (BTC) New Year Rally Ended? Ethereum (ETH) Crucial Bearish Pattern, Dogecoin (DOGE): Down Even More
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Bitcoin's New Year rally has stalled, prompting concerns about whether the bullish momentum is weakening. According to the given chart, Bitcoin is currently trading at $104,899, a 1.21% decrease after retracing slightly after reaching $106,214. The overall trend is still bullish, but fatigue is beginning to show. The chart's important finding is how closely Bitcoin sticks to its rising trendline.
Since Bitcoin is still trading above important support levels, the rally that started in late October is still going strong. Notably, the 50 EMA has provided dependable dynamic support, and if selling pressure builds, the $98,400 and $97,500 levels could act as safety nets. You should also pay close attention to volume. Bulls may be losing steam if recent trading sessions reveal a drop in buying volume.
A wave of new buyers would probably have been sparked by a breakout above $106,000, but the lack of follow-through suggests a brief decline rather than a complete trend reversal. For the time being, Bitcoin's short-term course is largely dependent on its ability to sustain support above the trendline. The next significant support is located close to $90,000. If this structure is broken, the price may be exposed to further declines.
For the foreseeable future, Bitcoin continues to hold its bullish stance. Corrections such as this are typical during extended rallies, and the uptrend is still intact. To confirm the next leg up, Bitcoin must close decisively above its previous high in order for the rally to continue. If this is not done, the market may cool off and enter a more extensive consolidation phase.
Ethereum's weakness
Ethereum is exhibiting signs of weakness following its inability to sustain momentum at its most recent local peak, which was close to $4,100. The price is currently down 0.69% to $3,867 after a minor retracement. Concerns regarding the formation of a potential bearish trend on Ethereum's chart are raised by this pullback.
Dropping from the recent high is the first warning sign. Ethereum is now having difficulty holding above its 20-day EMA, a crucial short-term support level that is presently centered around $3,707 following weeks of robust upward movement. The 50 EMA, which is located close to $3,355, is the next important support if ETH is unable to hold this level.
Godfrey BenjaminA decline below this range might indicate a change in the mood of the market and push ETH closer to the psychological $3,000 mark. There is also the issue of volume data. Ethereum saw a spike in November, but recent sessions indicate that buying volume has decreased.
Bulls may be losing steam, as indicated by the waning buying pressure, which leaves ETH open to additional selling pressure. Technically speaking, there is a bearish divergence beginning to form on Ethereum's price chart. The relative strength index, or RSI, is exhibiting signs of stagnation close to 63, a level that frequently indicates a loss of bullish momentum even though prices reached a local high.
A deeper bearish trend may be confirmed if the RSI continues to decline. Ethereum's overall long-term trend is still positive, as long as it stays above important support levels, even with the short-term bearish outlook. The $3,707 and $3,355 support zones are crucial for investors to monitor. Reviving bullish momentum and laying the groundwork for a possible recovery could be achieved by a bounce from these levels.
Dogecoin's decline
The price of Dogecoin is still declining as it tries to stay above important support levels. The meme coin is currently trading at $0.386, down about 2.04% in the last day, and the technical outlook is still worrisome. The ascending channel that DOGE used as a key support during its most recent rally has clearly broken down in the company's recent price action.
The $0.45 region has now become strong resistance due to the inability to sustain momentum. Dogecoin may soon approach the 50-day EMA, which is presently at $0.35 as a result of this breakdown. It is concerning that the asset is testing this level so soon after its rally, even though it offers strong technical support.
This pullback's decreasing volume emphasizes the waning buying pressure even more. Because there is not much demand, DOGE bulls are reluctant to intervene, which leaves the asset open to more declines. The $0.28 mark is the next crucial support if the 50 EMA does not hold.
A decline below this might pave the way for a more severe correction in the direction of $0.21, a level not seen since the last significant breakout in November. Although it is not yet oversold, DOGE's current position near 56 on the RSI (Relative Strength Index) front indicates that the downward momentum is intensifying. The market may confirm bearish dominance if the RSI continues to decline.
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