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Bitcoin, Ethereum, Dogecoin Forecast: Time for consolidation

Bitcoin continues to consolidate negatively, recording new November lows. During the Asian session, the price fell $ 58,600 and will likely threaten the previous low from October to $ 58,000. This is the first potential support that could return the price of Bitcoin into a bullish trend. The pressure on the price is still evident, and if a breakthrough occurs below this support, we can see us in the $ 55,000 zone.

Bullish scenario:

  • We need a new positive consolidation above $ 58,000 that will climb us again above $ 60,000.
  • Further bullish movement brings us to the essential zone around $ 64,000.
  • With the breakthrough above, we can say that we have recovered from this fall and returned to the bullish scenario.

Bearish scenario:

  • We need a break below the $ 58,000 support zone, and further negative consolidation brings us down to the $ 55,000 support zone and the MA200 moving average.
  • The next set of support is at $ 52,000 on the bottom trend line.

Bitcoin, Ethereum, Dogecoin Forecast: time for consolidation

Ethereum chart analysis

During the Asian session, Ethereum’s price made a new low of $ 4065 this month. In the European session, we see that the price is still under great pressure, and we can expect a further price increase. We’ll be testing the $ 4,000 support zone again soon.

Bullish scenario:

  • We need a new positive consolidation that will drive the price up.
  • ETHUSD must find support above $ 4200 if it wants to continue on the bullish side.
  • The next resistance is in the $ 4400 zone, then the psychological level at $ 4500.
  • A break above brings us into the pre-consolidation zone of $ 4600-4700, and a break above us can take us to a new historic high.

Bearish scenario:

  • We need to go down to $ 4,000 to test potential support.
  • Break below the descent to the $ 3900 support zone from the end of October.
  • Around $ 3800, we find support in the MA200 moving average.
  • The maximum drop on this time frame is up to $ 3600 of the bottom trend line.

Bitcoin, Ethereum, Dogecoin Forecast: time for consolidation

Dogecoin chart analysis

The price of dogecoin has found the current support at 0.23000, and we see the current attempt to rise first above 0.24000 and then above 0.25000. Additional optimism for the bullish sequel would be if the price would break above the MA200 moving average.

Bullish scenario:

  • We need a price increase above 0.25000 to start a new bullish momentum.
  • In the zone around 0.26000, the next potential resistances in MA20 and MA50 moving averages await us.
  • A break above 0.27000 brings us back to the bullish territory.
  • The next resistances are at 0.28500, then 0.30000.

Bearish scenario:

  • We need a continuation of the negative consolidation below 0.23000, which leads us to 0.22000.
  • At 0.22000, we can expect potentially higher support as it coincides with the October support zone.
  • A further drop brings us down to the October support zone around 0.20000.

Bitcoin, Ethereum, Dogecoin Forecast: time for consolidation

Market overview

At least three Federal Reserve governors said they saw no reason for the Fed to issue a central bank digital currency (CBDC). The Fed is currently compiling a report on the digital dollar released in the near future.

Federal Reserve Governor Michelle Bowman said last week that she did not see much reason for the Fed to issue the digital currency of the U.S. central bank given the security and ability of the U.S. payment system. She said: I’m not quite sure I understand or see the business case for its creation.

The Fed is currently compiling a report discussing the pros and cons of issuing a digital dollar, and the information is expected to be released soon.

Another Federal Reserve governor who is skeptical that the Fed is issuing a digital dollar is Randal Quarles. He said at a conference of the Milken Institute on October 20 that he did not understand the arguments in favor of issuing the central bank’s digital currency. 

Federal Reserve Governor Christopher Waller also doubts the Fed should issue a digital dollar. He explained in October, during a discussion organized by the Official Forum of Monetary and Financial Institutions, that the digital dollar would put the Fed in direct competition with commercial banks.

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