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Hidden Dogecoin (DOGE) Cross Happening, Bitcoin's (BTC) Path to $70,000, Ethereum (ETH) to Face Bearish Wedge?

Published 08/15/2024, 08:30 AM
Updated 08/15/2024, 11:45 AM
© Reuters Hidden Dogecoin (DOGE) Cross Happening, Bitcoin\'s (BTC) Path to $70,000, Ethereum (ETH) to Face Bearish Wedge?
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U.Today - Dogecoin is about to undergo a noteworthy technical event that could significantly affect how much it moves in the future. This is almost a death cross, where the 200-day Exponential Moving Average (EMA) crosses below the 100-day EMA.

Because it represents a change in momentum from bullish to bearish, this technical pattern - which is occurring around the $0.12 level - usually indicates the possibility of a protracted downtrend.

A bearish outlook for Dogecoin may be confirmed if the 100 EMA crosses below the 200 EMA and remains there. The price of DOGE would probably decline more as a result of this event, discouraging buyers and drawing sellers. Though not all death crosses result in large losses, historically, they have frequently preceded protracted periods of price declines.

Three crucial Dogecoin price levels need to be regularly watched: the immediate resistance level at which the possible cross might take place is $0.12. DOGE may find it difficult to regain bullish momentum if it is unable to break above this level. In recent weeks, DOGE has found a floor at $0.105. If this level falls below it, it might indicate additional vulnerability and possibly lead to a retest of lower levels.

Bitcoin's path to $70,000

At the moment, Bitcoin is moving in a well-defined channel, and a move toward $70,000 is looking more and more likely. The 50-day and 100-day Exponential Moving Averages (EMAs) are two significant resistance levels that BTC must first overcome in order for this bullish scenario to come to pass.

The 50 EMA and 100 EMA are significant resistance levels that have historically been hard for Bitcoin to breach, as the chart illustrates. At the moment, these levels correspond with important price zones that traders are keeping a close eye on. Bitcoin may be able to test the channel's upper boundary and advance toward the $70,000 mark if it is able to decisively break above these EMAs, which would indicate strong upward momentum.

There is currently enough room for significant price movement in the trading channel that Bitcoin is moving through. But unless the 50 EMA and 100 EMA are broken, Bitcoin's price is probably going to stay capped, with resistance levels preventing any significant advance toward higher targets. Bitcoin would not only overcome the current resistance but would pave the way for a possible rally to $70,000 if it were to successfully breach these EMAs.

Ethereum needs another push

Ethereum seems to be following a pattern on its chart that is very similar to a bearish wedge. If this formation unfolds as predictedб it could be problematic for Ethereum's current bullish momentum. It is frequently regarded as a bearish reversal pattern. A bearish wedge with its support and resistance lines convergent usually develops following an uptrend and is characterized by a contracting price range.

Within the wedge, there is typically upward price action, but decreasing volume and a narrowing range frequently indicate a decrease in purchasing pressure. Eventually a break from this pattern might cause prices to drop sharply, reversing the previous uptrend. Ethereum's recent gains could be in jeopardy as it trades within this potential wedge.

In the event that the pattern holds true, ETH might see a sharp decline and possibly return to earlier support levels at $2,600 or even $2,500. Given that the market has been generally bullish in the near term, this would indicate a significant shift in sentiment. Traders should keep a close eye on the volume and price movement of ETH over the next three days.

The probability of a breakdown rises if Ethereum stays inside the wedge while volume falls. But if ETH can rise above the wedge's upper resistance line with significant volume, this bearish scenario might be avoided, and the uptrend might continue.

This content was originally published on U.Today

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