Bitcoin, Ethereum, Dogecoin in a Sleepy Consolidation
Once again, the price of Bitcoin fails to stay above $ 64,000 and makes a new pullback to the current $ 61,500. We failed to make a more significant new higher high, and now we will probably continue the pullback. The price is testing the October trend line, and if we see a break below, we may retest the zone again at $ 60,000.
- We need positive consolidation above the trend line, MA20, and MA50 running averages.
- After that, we can expect to retest the previous resistance zone at $ 64,000.
- With the break above, we encounter resistance at $ 65,000, then the previous higher high at $ 67038.
- The price should continue with this negative consolidation below the October trend line.
- Further, break below the price drop to $ 58,000 previous low.
- Following Fibonacci retracement levels, we need a break below 23.6% Fibonacci levels, aiming at a 38.2% level at $ 56,640.
What we can notice is that the price has held above $ 60,000 over the last ten days, and until we see a stronger break below, we can’t expect a transition to a bearish trend.
Ethereum chart analysis
The price of Ethereum made a new historic high at $ 4670 yesterday. After that, we see a price increase during the Asian session to $ 4,500, and currently, during the European session, we have consolidation at that level.
- The price needs to stay above the $ 4400-4500 support zone.
- The MA20 and MA50 moving averages provide us with additional support in the October growing channel.
- Our next resistance and target is $ 4,700, then $ 4,800 and a psychological target at $ 5,000.
- We need negative consolidation below the support zone and the MA20 moving average.
- A further drop in the price brings us to the channel’s bottom line and the MA50 moving average in the zone 4200-4300 $.
- A break below the channel’s bottom line will increase the bearish pressure, and after that, we can see the price at $ 4000.
Dogecoin chart analysis
The price of Dogecoin fell again below 0.27000 of the previous October resistance zone. It is now again under pressure from the MA20 and MA50 moving averages, and chances are it will drop to the bottom trend line in the area at 0.25000.
- We need a positive consolidation that will make a new turn to the bullish side.
- The price must make a break above 0.2700 if it plans to climb to the previous high.
- The first resistance is 0.30000 psychological level, then high from September to 0.32000 and October high at 0.34000.
- We expect the withdrawal to continue until the lower October trend line in the MA200 moving average zone at 0.25000.
- The break below brings us to the next support levels at 0.24000, then 0.22000, then the October minimum to 0.20000.
Fund manager Mark Mobius an interview with CNBC, crypto is more like a religion than an asset to invest in due to its very speculative nature. He thinks that cryptocurrencies should be seen as a fun activity and not as an investment.
He also added: “People should not see these cryptocurrencies as an investment tool, and it is a means of speculation and entertainment. But then you have to go back to stocks at the end of the day.”
Cryptocurrencies are often met with contrasting opinions by high-profile investors, financial regulators, and analysts. While some large institutional investors believe that crypto has potential, others are adamant that the asset class is worthless.
The executive director of JPMorgan Chase and a well-known critic of Bitcoin, Jamie Dimon, criticized Digital Asset, saying that Bitcoin has no essential value and is “gold for fools.” He added that BTC must be regulated due to potential abuse to perform illegal transactions, terrorism, including and sex trafficking and money laundering.
Billionaire investor Paul Tudor Jones said crypto is his preferred choice over gold, adding room for an asset class and that cryptocurrencies are better protection against inflation than gold.
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