With the Bitcoin price falling below the 200-day EMA, which has long been a key support level for the asset, the market is currently entering a bearish phase. As can be seen in the chart provided, the current trend indicates that BTC is moving within a well-defined downward price channel.
This channel shows a consistent downward trend with lower highs and lower lows, indicating that pressure on Bitcoin is likely to be felt for some time. The black line, which represents the 200-day EMA breaking below it, is a critical sign of diminishing momentum. Bitcoin price has historically declined further when it reaches this mark.
The failure to hold above this level contributes to the overall bearish sentiment in the market. The clearly visible descending price channel indicates that Bitcoin is likely to continue to decline until it finds a strong support level in this range. Based on the chart, the lower boundary of the descending channel, or around $53,000, appears to be the next significant support level.
This level may serve as a temporary cap for Bitcoin’s price, but if it is broken, it could fall further and test the psychological barrier of $50,000. Additionally, the decreasing volume that accompanied the price decline indicates a lack of significant buying interest, which may make it difficult for Bitcoin to overcome the current downtrend.
Dogecoin is losing it
With the asset currently trading below the critical $0.1 mark and adding another zero to its price, Dogecoin is struggling and in a prolonged downtrend. For DOGE investors, this represents a significant psychological barrier, and the asset’s failure to maintain any momentum suggests that there are deeper problems in the market.
Due to current market conditions, Dogecoin is becoming increasingly vulnerable, as evidenced by its price action. This chart shows that Dogecoin has been steadily declining for several months, unable to break through important resistance levels that its moving averages have established. The bearish long-term outlook is indicated by the 200-day EMA, which is significantly above the current price level.
Further supporting the bearish outlook are the continuous downtrends of the 50-day and 100-day EMA. The even darker outlook is supported by the volume profile. The unusually low trading volume indicates that there is not much interest in buying Dogecoin. With little buying pressure offsetting the selling, the low volume suggests that the downtrend may continue for longer.
With no buyers, Dogecoin is vulnerable to further declines, with the next potential support levels around $0.08 or even lower. Additionally, the relative strength index, or RSI, is hovering near the lower limit and showing weakening momentum, although it is not yet in an oversold situation. This means there may still be more room to move lower before any significant reversal can be expected.
Solana strives for recovery
Solana appears to be preparing for a potential rebound as its price reaches a critical support level. Historically, this price range has proven to be a solid foundation for Solana’s price recovery, and current technical indicators suggest that such a move may be on the horizon.
Looking at the chart provided, SOL is trading just above $130, an area that has served as a pivot point for several price reversals in the past. The price recently dropped below its 50-day and 200-day EMAs, signaling a bearish phase, but the current volume profile suggests that selling pressure is starting to ease. This could create an opportunity for buyers to step in, pushing the price higher in the short term.
Additionally, the RSI (relative strength index) is showing signs of being close to oversold territory, hovering around 42. This could mean that SOL is approaching the point where sellers have exhausted their momentum, potentially making it ripe for a bounce. A reversal from these levels could easily push Solana back to the 50-day EMA, which is currently around $145.
However, it is important to note that overall market conditions remain somewhat uncertain. While Solana has a history of rebounding at these price levels, the lack of significant volume in recent days could be a concern. For a sustainable recovery, we need to see a surge in buying interest accompanied by higher trading volumes, especially as the price approaches key resistance levels around $140-$145.
