Bitcoin Technical Analysis
Bitcoin is close to closing its fourth gain on the weekly chart. An increase over the past 24 hours has brought the price of bitcoin back above $4000 but the market leader now faces pivotal resistance points.
The resistance points include an area of seller liquidity which is detailed on the below daily chart. There is also a downward trend line which has been a critical area of resistance since March of 2018.
Price has failed to overcome this trendline on numerous occasions, and a failure to defeat this level preceded the nearly 50% depreciation which took place in November.
Price has been behaving similarly to before the price decline in November. Price has been consolidating with both lower highs and higher lows forming.
Any attempt at price forming clear higher highs found seller liquidity from $4100 to $4250.
Any time price has entered this territory it quickly found selling pressure to bring it back below.
BTC Support Level to Monitor
The key support level to monitor is $3768 which price has tested numerous times during the week. Price has started increasing in recent trading bringing back up towards the area of seller liquidity above.
Both the area of seller liquidity and the downward trendline are vital points to watch for price prospects of bitcoin. If price can overcome both these point and close above on the daily, there is a strong possibility of significant buying pressure coming into the market.
Dogecoin Technical Analysis
Despite most altcoins outperforming in recent trading, DOGE continues to consolidate close to $0.002.
The last eight weekly candles for DOGE have closed with small bodies with some closing as Doji candles. A Doji candle is a candle where the open and the close are around the same point. Both Doji candles and small-bodied candles reflect uncertainty in the market and indicate that traders are unsure whether DOGE is to be valued above or below $0.002.
DOGE has been performing better this week than the previous two months but has nonetheless underperformed most major altcoins.
Although the price has been increasing over the past few days for DOGE, resistance lies above $0.0023. Price has met selling pressure at this point numerous times in previous price action and sellers may be arriving early anticipating this resistance point.
The current daily candle for DOGE is forming a Doji showing traders are uncertain of price direction for DOGE.
- Bitcoin rises back above $4000 but trades close to key resistance levels
- A downward trendline which price has failed to overcome since March of 2018 is close as well as an area of seller liquidity from $4100 to $4250
- If bitcoin price can overcome these key resistance levels, there is a strong possibility significant buying pressure will enter the market
- DOGE has consolidated for the past eight weeks close to $0.002 but has recorded an increase over the past few days
- Traders are still uncertain of price prospects for DOGE as a Doji forms on the daily candle
|DISCLAIMER: Investing or trading in digital assets, such as those featured here, is extremely speculative and carries substantial risk. This analysis should not be considered investment advice, use it for informational purposes only. Historical performance of the assets discussed is not indicative of future performance. Statements, analysis, and information on blokt and associated or linked sites do not necessarily match the opinion of blokt. This analysis should not be interpreted as advice to buy, sell or hold and should not be taken as an endorsement or recommendation of a particular asset.|