Bitcoin, Ethereum, Dogecoin increase greed pushes prices up
Looking at the BTCUSD chart on the daily time frame, we see that yesterday’s price managed to make a new high at $ 55,250, and we were last there on May 12 at the very beginning of the crypto market crash after Musk posted his tweet about rejecting Bitcoin as a means of paying for Tesla cars. Today on the chart, we have a smaller pullback to $ 53,790. Below, we now have the first support at 61.8% Fibonacci level at $ 51,200. If the pullback continues, our next psychological support is at $ 50,000. Moving averages are in the zone of about 50.0% Fibonacci levels at $ 46,900.
Our 200-day moving average is in the area of around $ 45,000, and if a bigger pullback happens, we can expect support together with the lower trend line of support. To continue the bullish trend, we need the continuation of this positive consolidation, and our next upper resistance is at 78.6% Fibonacci level at 57300. Above the stronger resistance zone is $ 59000-60000, the place where the steep decline in Bitcoin price began in May.
Ethereum chart analysis
Looking at the ETHUSD chart on the daily time frame, we see that the price made a break above $ 3500. We were a little short of reaching a transitional high at $ 3680 from September. After the pullback dropped to 61.8% Fibonacci level to $ 2600, we have a bullish trend to date. Now we need further positive consolidation that will direct the price towards the previous high at $ 4000.
For the bearish scenario, we need a withdrawal below 23.6% Fibonacci levels, testing a 50-day and 20-day moving average, after which we seek support at 38.2% Fibonacci levels at $ 3115. Stronger and more concrete support awaits us on the lower trend line of support with a 200-day moving average in the zone of about 50.0% Fibonacci levels at $ 2845. If the price break below this large support will direct us into a stronger bearish trend for the potential to go down to previous lows from July.
Dogecoin chart analysis
Looking at the Dogecoin chart on the daily time frame, we see that yesterday’s price tested the upper trend line and the 50-day and 200-day moving average in the zone around 0.27000. Today the situation is a little different because we have a price withdrawal at the current 0.24440. If the pullback continues, we are looking for the next support on the 20-day moving average in the 0.23000 area.
The break below leads us to re-test the previous low zone at 0.20000. For the bullish scenario, we need a positive consolidation that will push the price above the upper resistance line and above 0.27000, a very important obstacle to the bullish trend. If the price succeeds in that, only then can we expect further growth to the next psychological level at 0.30000.
Digital assets are fast becoming an integral part of financial systems worldwide, a fact that can no longer be ignored. The bank noted that the digital asset class has grown and now represents a market of over $ 2 trillion with over 200 million users, figures that have had the power to influence and transform large industries worldwide by improving efficiency and addressing challenges hindering existing financial models. The bank also noted that there has been a sharp increase in the number of companies being formed within this new ecosystem with a focus on digital assets.
Bank of America previously announced plans to introduce bitcoin battle trading for its clients through the Chicago Merchantile Exchange Group (CME), which would act as a liquidity provider. The decision to hire CME was made even as various digital asset companies continued to pile up Bitcoin ETF applications without success, prompting various central banks, such as JPMorgan and now BOA, to hire the services of certified traditional companies.
Financing rates that become an overly optimistic indication that the market expects further growth and that the long BTC is a significant value. In such circumstances, a mass layoff of positions could accelerate and intensify the downward movement if it begins.
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