Bearish Price Action From Bitcoin & Dogecoin as Crypto Prices Retrace [Price analysis]
After a strong performance last week across cryptocurrencies, the market leader Bitcoin has failed to follow up this week with an increase.
It looks likely that the week will close at a loss.
The price managed to continue to rise to one of the levels where price broke down in November but failed to overcome this level.
Price action was relatively bullish up until Thursday.
Price action was mostly consolidating between Monday to Wednesday increasing the chances of the price following up with another significant increase.
However, Thursday’s Bitcoin price action erased any gains that were recorded for the week.
After the significant declines recorded on Thursday, the price has since been consolidating increasing the likelihood of the price action following up with another significant drop.
This scenario is further supported by the MACD and RSI dropping on both the 4-hour and daily chart indicating greater selling pressure.
There is also some evidence that the rapid price increase last week may have been due to a large buyer executing several trades of greater than 100 Bitcoin.
Desk Update: The post-trade analysis of Monday evening’s price action revealed a series of large bids (>1,000 BTC per order) within a 1 hour span, which appear to be actual buyers vs. forced liquidations. pic.twitter.com/UiuHLoCbPr
— Cumberland (@CumberlandSays) April 4, 2019
If this is the case, the buying pressure responsible for the price increase may now be absent, and we may be experiencing a correction as a result of this.
The Dogecoin price has erased its gains from last week to a much greater extent than Bitcoin.
DOGE has spent much of the month prior to the price increase trading at a support level at $0.002.
The price has now retraced over 50% from this support level to the high of the price increase.
During the rise, the price briefly dropped back to meet support at $0.0023, a prior resistance level.
During the decline this week, the price had some interaction with the Fibonacci retracement levels between the $0.002 low and the high formed last week at $0.0043.
Price found brief support at the 50% retracement level, but this did not hold for long.
After dropping back below, the price did rise back up to test this level as resistance.
However, the price has since continued to drop below the 0.618 retracement level.
It has since come back to test this level as resistance but the price action so far this week for Dogecoin has been extremely bearish, and it looks unlikely that the price will rise back above the 0.618 retracement level.
- Bitcoin and DOGE fail to follow up on the bullish price action of last week and undergo retracements.
- Bitcoin met resistance at a level where the price broke down in November and recorded bearish price action on Thursday which reversed any gains recorded from Monday to Wednesday.
- DOGE has retraced over 50% from its $0.002 support to the $0.0043 high it formed last week.
- DOGE has continued to drop below the 0.618 retracement level and has since moved back up to test this point as resistance.
Bearish Price Action From Bitcoin & Dogecoin as Crypto Prices Retrace [Price analysis] was originally found on copy trading cryptocurrency | Tech, Privacy, Bitcoin & Blockchain | Blokt.