A major factor in this setback was the liquidations. Positions with excessive leverage, especially in Ethereum and Bitcoin, have compelled the market to adjust. A difficult environment for additional upward movement has been created by the selling pressure from leveraged longs, as evidenced by the $172 million in Bitcoin liquidations alone. The dangers of unmanageable leverage on cryptocurrency markets are highlighted by this type of liquidation cascade.
Technically speaking, Bitcoin is currently receiving support at its 26 EMA, a crucial level that frequently serves as a rebound point during corrections. Nonetheless, the inability to hold above $100,000 or retest indicates a lack of bullish conviction. Compared to the previous sharp rallies, the trading volume is still lower, indicating less buying zeal.
The overall structure of Bitcoin remains bullish in spite of these difficulties. Instead of indicating a full reversal, the consolidation pattern that is developing on the chart indicates that Bitcoin is taking a break. If tested, the important support levels of $94,000 and $85,000 could act as the foundation for a more robust recovery. The biggest obstacle on the resistance side is still $100,000, and a break above it might spur new momentum.
Even though the road to $100,000 has been postponed for a while, it has not been forgotten. The current correction offers the market a chance to reset and forge a stronger base because it is a normal stage in the larger market cycle for Bitcoin. Investors will need to exercise patience while Bitcoin moves through this crucial stage.
The ascending channel breakdown suggests that Dogecoin’s bullish rally may have petered out, at least temporarily. Additionally, volume trends point to waning interest, as trading activity is not sustaining additional upward movement. This decline is consistent with the larger crypto market correction, in which declines on a variety of assets have been facilitated by overleveraged positions and profit-taking.
In terms of technical analysis, $0.31 and $0.27 are the next support levels to keep an eye on. Dogecoin needs to stay in these areas in order to prevent more losses and possibly regain its footing. Before focusing on higher targets like $0.45 or even $0.50, any recovery attempts must first overcome the $0.40 level, which is currently acting as a resistance.
Dogecoin’s recent actions underline how vulnerable it is to fluctuations in market sentiment and speculative trading. Massive rallies have historically been fueled by its community-driven nature, but the current climate necessitates caution. Uncertainty about DOGE’s immediate course is increased by the need for correction on the larger market.
For the time being, traders and owners of Dogecoin should keep a careful eye on the main levels of support and resistance. A more substantial decline could be possible if $0.31 is not held, but a recovery above $0.40 could reignite bullish optimism. As usual, navigating the erratic nature of this well-known meme coin will require perseverance and a well-defined plan.
SHIB is currently trading at about $0.00002648, and its failure to maintain recent highs underscores the growing investor concerns. The recent consolidation pattern on the chart has clearly broken down, indicating a loss of momentum. Notably, SHIB has fallen below $0.00002700, a crucial support level that served as a bull market stronghold. This failure raises the possibility of additional downside pressure if bulls are unable to regain control in a timely manner.
SHIB is more vulnerable, as volume analysis shows declining buying interest. The asset may be under more pressure if this decline in momentum encourages more selling activity. The next key support levels to keep an eye on given the current trajectory are $0.00002430 and $0.00002200. If these levels are breached, the decline may be even more severe and may even test the $0.00002000 threshold. All is not lost for SHIB, though.
After significant corrections, the asset has historically demonstrated the ability to recover quickly, frequently propelled by speculative trading and community-driven hype. In order to restore bullish momentum, SHIB needs to recover above $0.00002800 and continue to rise steadily, bolstered by rising volume.
This article was originally published on U.Today
Source: Cryptocurrency - investing.com
