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Shiba Inu (SHIB) Death Cross Is In, Bitcoin (BTC): This Is Not What You Think, Is Solana (SOL) Inverted Double Top Pattern in Play?

Published 07/22/2024, 08:30 AM
Updated 07/22/2024, 12:15 PM
© Reuters.  Shiba Inu (SHIB) Death Cross Is In, Bitcoin (BTC): This Is Not What You Think, Is Solana (SOL) Inverted Double Top Pattern in Play?
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U.Today - Shiba Inu has clearly lost some serious traction on the market with the inability to break through and gain a foothold above the $0.000017 threshold. At the current point in time, investors have little to no belief in SHIB's future, hence the confirmation of the death cross on exponential moving averages.

A short-term moving average crossing below a long-term moving average is known as a death cross, and it frequently indicates the start of a possible bearish trend. The 50-day EMA has crossed below the 200-day EMA in SHIB's case, which many traders view as a strong bearish signal.

This pattern indicates that SHIB may face short-term difficulties going forward. SHIB has not been able to sustain its upward momentum as evidenced by recent price action. The general trend continues to decline despite sporadic spikes.

The market has been unable to break through notable resistance levels and has been trading near the $0.000017 mark. This struggle suggests that there is still a lot of selling pressure and that SHIB is seeing extremely negative sentiment.

The death cross is indicated by the 50 EMA crossing below the 200 EMA. It frequently prompts traders to sell more as they try to reduce their losses, which drives the price lower.

Bitcoin's mixed signals

Bitcoin has misled some investors with the formation of longer-term time frames that looked like a descending flag, which usually leads to an explosive breakthrough. According to commentaries of prominent analysts like Peter Schiff, the asset is actually in the downward channel.

The chart displays the major EMAs as well as the most recent changes in Bitcoin's price. Although a breakout was anticipated by some investors, the actual outcome has been different. The general trend for Bitcoin seems to be bearish, and it has struggled to break above significant resistance levels. You should pay particular attention to the 50 EMA, 100 EMA and 200 EMA.

Bitcoin is still encountering strong resistance at the $68,000 level notwithstanding recent gains. The price action of Bitcoin, according to Peter Brandt, is more suggestive of a downward channel than a bullish setup.

According to this viewpoint, the current price changes are a component of a larger bearish trend. It is possible that Bitcoin will continue to experience selling pressure and find it difficult to build meaningful upward momentum based on the downward channel. Short-term price fluctuations within this channel are possible for Bitcoin.

At the current positions of the moving averages, the unclear state of the trading volume and technical indicators in general, we might see a continuous consolidation at around the current levels or even a correction, before moving forward.

Solana stays composed

Solana has successfully secured its placement at around $170, following an explosive breakthrough of the 50 EMA resistance level, and the inverted double top pattern could be a sign of a rally continuation here.

Indicating a possible upward price movement, an inverted double top pattern is typically regarded as a bullish signal. According to Solana, this pattern indicates that the recent gains may be a component of a longer-term bullish trend rather than a transient spike. The 50 EMA has been broken by the price, which supports the optimistic forecast.

The recent breakthrough above the 50 EMA points to strong momentum and strengthened buying interest. This movement is consistent with an inverted double top pattern, which frequently signals the start of a sizable upward trend.

The price action of Solana has been encouraging as the cryptocurrency has been rising steadily and holding its position above significant support levels. However, with the descending volume, it could be wiser to stay cautious and avoid plays that might be considered too risky.

This content was originally published on U.Today

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