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Bitcoin (BTC): Double Bottom or Head and Shoulders? Dogecoin (DOGE) Price Goes Through 5% Surge, Ethereum (ETH) at Pivotal Market Level

Published 09/27/2024, 08:01 AM
Updated 09/27/2024, 11:15 AM
Bitcoin (BTC): Double Bottom or Head and Shoulders? Dogecoin (DOGE) Price Goes Through 5% Surge, Ethereum (ETH) at Pivotal Market Level
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U.Today - As it looks to break out of its ongoing bearish trend, Ethereum is at a pivotal point on the market. Lately, ETH has surged past a number of notable resistance levels, indicating strength and positivity among traders.

With its current price hovering around $2,624, Ethereum is trying to keep growing after breaking through significant barriers. But a discernible rise in selling pressure is making it harder for it to maintain this development. There is a turning point coming for Ethereum because of the selling pressure at the moment.

For the asset to stay out of the bearish pattern that has characterized most of its recent price action, it needs to hold its support level around $2,550. The next target where more resistance is likely to be found is probably around $2,780 for ETH if it can break through the present resistance zone. However, if the selling pressure is maintained, Ethereum might drop back below the levels of support it recently conquered, which could lead to another wave of lower prices.

A critical level is also being approached by the Relative Strength Index (RSI), suggesting that traders are closely monitoring whether Ethereum will continue its optimistic recovery or experience another correction. Because the market is currently at a crossroads, Ethereum's future is still unclear. The short-term price movement of ETH will probably be shaped by the choices traders make at this point.

It is important to keep a close eye on this critical market level because, while breaking out from the bearish trend could result in substantial gains for Ethereum, failing to do so could indicate a return to more difficult price action in the near future.

Dogecoin pushed forward

With a noteworthy 5% price increase, Dogecoin has now crossed the crucial 100 EMA level on the daily chart. As it approaches the 200 EMA level, traders and investors are becoming more optimistic due to this upward trend. A major bullish shift and the possibility of a long-term trend reversal could be indicated if Dogecoin is able to move above the 200 EMA.

The potential for a golden cross formation in which the short-term moving average crosses above the long-term moving average is the pivotal element of this rally. Conviction of Dogecoin's future price movement may be reinforced by the golden cross, which is frequently regarded as a reliable sign of a bull market.

As Dogecoin gets closer to this crucial technical level, traders are keeping a close eye out for a breakout that might trigger a long-term uptrend. But it is crucial to take the overall sentiment of the market into account.

Dogecoin continues to encounter strong opposition, even though it has demonstrated resilience in recent days. The 200 EMA, or the $0.12 mark, is the next significant resistance level.

Dogecoin could see further gains if there is a successful breakout above this level, which would draw in more buyers and confirm the trend reversal. However, a retreat might occur if the 200 EMA is not broken, with support levels being close to $0.1000. The recent gains could be in trouble if selling pressure picks up, and Dogecoin might go back into a consolidation phase.

Bitcoin paints important pattern

At the moment, Bitcoin is showing chart patterns that may indicate a significant move in either direction. The two possible patterns that traders believe Bitcoin is forming — a double bottom and a head and shoulders — have very different consequences for the price movement of BTC in the future.

When the price hits a low, bounces back and then retests that low before rising higher, it forms a double bottom, a bullish reversal pattern. With regard to Bitcoin, the market appears to be recovering from a recent low at about $61,000 a significant level of support that may confirm this pattern.

Bitcoin might try to break above the $65,000 resistance level once more if the double bottom holds, which might lead to a significant rally toward higher prices. However, it is impossible to rule out the chance of a head and shoulders pattern. An impending price decline is indicated by this bearish reversal pattern, which follows an upward trend.

Regarding Bitcoin, the recent high of about $64,800 may be considered the head and the earlier highs the shoulders. Bitcoin could experience a longer bearish phase if it begins to decline and breaks through significant support levels such as $61,000. This would validate the head and shoulders pattern.

Both trends are being watched carefully, and how Bitcoin performs in the upcoming days will determine how valid they are. Bullish momentum would ensue from a successful breakout above $65,000, which would refute the head and shoulders and validate the double bottom. The completion of the head and shoulders pattern could indicate that BTC is finished, which would drive the price lower if it is unable to hold above $61,000.

This content was originally published on U.Today

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