Bitcoin took a heavy hit after hitting the $71,000 threshold, losing 14% of its value and plummeting below $60,000. However, there is a realistic chance of a reversal in the foreseeable future as BTC has reached the lower threshold of the market’s sideways channel.
Bitcoin took a hard hit after reaching the $71,000 threshold, losing 14% of its value and plummeting below $60,000. However, there is a realistic chance of a reversal in the foreseeable future as BTC has reached the lower threshold of the market’s sideways channel.
First, BTC price action indicates a major buy zone at $58,000, a historical support level. The 200-day moving average, or black line on the chart, and this support level imply that a Bitcoin rally may be imminent.
The volume profile shows more encouraging signs. Due to the recent drop, trading volumes have increased, suggesting that buyers are still very interested in the product at these reduced prices. Increased activity usually signals an impending price reversal because it is an accumulation of investors anticipating profits in the future. Moving averages offer an additional level of understanding.
Although these levels frequently serve as dynamic support and resistance zones, the chart indicates that Bitcoin is currently trading below the 100-day and 50-day exponential moving averages. A break above these moving averages in Bitcoin suggests a possible trend reversal and a move in the direction of bullish momentum.
For now, there is no distinctive fuel for the asset and it is unlikely to appear in the foreseeable future unless the Ethereum ETF boosts the market as a whole.
XRP prepares
XRP is in the process of making another reversal attempt to break the downtrend that occurred after the prolonged sideways trend. We are aiming to break above the 26 EMA and achieve a substantial stabilization and reversal. However, what is really needed at the moment is momentum.
The chart indicates that XRP has struggled to maintain its upward momentum and has failed to break through significant resistance levels. To suggest a potential trend reversal, XRP needs to cross above the 26-day exponential moving average (EMA). This level has served as a barrier and a successful breakout could herald the start of a bullish phase.
Gamza KhanzadaevHowever, volume analysis reveals that traders have different opinions. Trading volume has occasionally increased, but not enough to allow for a long-term uptrend. Significantly higher buying volume is needed for XRP to sustain its reversal attempt. This would give the market the momentum it needs to break through resistance levels and keep prices high.
According to the Relative Strength Index (RSI), XRP is currently in the neutral zone. There is potential for bullish movement because it does not show overbought or oversold conditions.
Dogecoin aims higher
Dogecoin is going to test the price threshold of $0.13 in the coming days, which suggests the current composition of the market. We will most likely see a test of the 200 day EMA threshold and a subsequent breakout, if there is enough momentum.
The 200-day exponential moving average (EMA) is represented by the $0.13 mark on the chart, indicating that Dogecoin has found it difficult to break above significant resistance levels.
Yuri MolchanA successful break above this level, which has historically been a major resistance point, could signal a bullish reversal. There may be cause for concern as volume analysis indicates that trading activity has been relatively subdued. Dogecoin requires a considerable increase in buying volume to continue its upward trend.
The momentum needed to convincingly break above the 200 EMA may be hampered by the lack of consistently high trading volumes. Also noteworthy are the relative positions of the 100-day and 50-day EMAs. At the moment, Dogecoin is trading below both of these moving averages, which typically denotes a downtrend.
But DOGE would be a very bullish indicator if it could generate enough buying pressure to break through these levels. The Relative Strength Index (RSI) offers additional insight.
The fact that Dogecoin’s RSI is currently in the neutral zone indicates that there is still potential for an upward move without an overbought situation. A move above the 50-point RSI threshold would increase confidence in a possible bullish breakout.
