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Cryptocurrency News Articles
Bitcoin Stalls Near $65,000 as Selling Pressure Emerges; Solana Flashes Broadening Wedge Reversal Pattern; Dogecoin Misses Its Chance
Oct 09, 2024 at 08:01 am
Recently there was a significant surge in the price of Bitcoin bringing it very near to $65,000. Many participants on the market were taken aback by the sudden and swift action. But just as quickly as Bitcoin's value increased, selling pressure quickly followed, which caused a sharp decline in price.
Bitcoin’s price action hit a roadblock in recent sessions, making it clear that the path to new highs is not without its challenges.
After rallying to within touching distance of $65,000, BTC encountered strong selling pressure that led to a sharp price decline.
This price whip saw on the chart serves as a classic illustration of Bitcoin’s volatility, especially when liquidity dries up at extremes.
While the price action up to $65,000 was encouraging, the subsequent price reversal shows that BTC is struggling to sustain its upward momentum.
Despite the initial excitement around the sharp move, there was not enough follow-through to sustain the gains, begging the question whether BTC will be able to revisit this level of strength anytime soon.
Currently, Bitcoin trades around $62,000 with resistance at $65,000. If Bitcoin is to stand a chance at another run at $65,000, it will need stronger volume and buying pressure — something that was lacking during the recent spike.
Traders and investors are advised to tread with caution due to the erratic price action, as there is no clear indication that BTC will continue to rise higher in the absence of strong support.
Moreover, technical indicators such as the relative strength index show neutral conditions, indicating that while the market is not overheated, there is also not strong momentum to drive Bitcoin higher in the near term.
If the crucial support of $60,000 is not maintained, BTC could revert to earlier price levels.
Solana’s hidden pattern
Solana is currently displaying signs of a broadening wedge reversal pattern. This pattern is characterized by a narrow starting point that widens over time, indicating increasing market volatility and indecision.
Typically, broadening wedge patterns result in either a breakout or a breakdown, and Solana is at a pivotal point where its next move will determine its course.
According to Solana’s chart, the price is currently trading just above crucial support levels between $140 and $145.
If SOL can gather enough momentum, the broadening wedge pattern suggests that a breakout could be on the cards.
For the asset to confirm a bullish breakout, it will need to clear the $150-$155 resistance zone, which has acted as a ceiling in recent weeks for Solana.
If Solana manages to break through this level with strong volume, the next target would be at or around $160, which aligns with earlier highs from September.
On the downside, Solana needs to maintain support at around $140 to continue its current upward momentum.
A breach of this barrier could invalidate the broadening wedge pattern, potentially leading to a decline toward $135 or lower.
Another crucial technical level to watch is the 50-day EMA, which is positioned around $145. Support at this moving average will further bolster a potential breakout.
Dogecoin’s missed opportunity
Having failed to clear a crucial stage, Dogecoin has missed its chance for a strong recovery.
It turned out that the 100-day EMA, which was acting as resistance, was an impenetrable barrier for DOGE.
This rejection has increased the probability of a decline, and the coin is now experiencing increased selling pressure.
After attempting to break above $0.12, Dogecoin faced resistance at the 100-day moving average (EMA). Since then, the price has started to decline.
If this level is not breached, it indicates that the bulls are no longer in control of the market and the momentum has shifted toward the bears.
The importance of this rejection lies in the fact that it was the critical turning point where DOGE had the opportunity to break its previous downtrend.
Now that the 100-day EMA has been rejected, Dogecoin is vulnerable to further declines.
The next level to watch for support is the psychological barrier at $0.10, which has acted as support in previous trading sessions.
Following this, the next significant support is around $0.09, and if DOGE breaks below this level, the downtrend could accelerate.
For any chance of a reversal, DOGE will need to reclaim the $0.12 level.
Based on the current price action, if there is no sudden surge in buying pressure, Dogecoin’s short-term downward momentum is likely to continue.
With the failed breakout attempt at the 100-day EMA, the asset seems primed for further losses, and traders should keep an eye on the crucial support levels ahead.
Disclaimer:info@kdj.com
The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research!
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