Bitcoin Forms New 2019 High As Dogecoin Struggles to Keep up [Price Analysis]
Bitcoin Price Analysis
Bitcoin has increased to form a new 2019 high and reapproaches a critical area for price action.
$6150 acted as a key level of support in 2018 for the price of Bitcoin before price broke below in November which spurred large amounts of sellers to enter the market.
As the price reapproaches this area, large amounts of selling pressure would be expected if the price continues its increase to $6150.
The longer-term momentum is currently with the buyers with both the RSI and MACD increasing.
However, the daily chart reports a mismatch between buying pressure and the price movements.
A double bearish divergence is forming on the daily chart between the price and RSI.
Price is continuing to increase, but increases of the same magnitude are not being recorded on the daily RSI.
A double divergence is a trend reversal pattern, but with buyer momentum strong on the longer-term weekly timeframe, there is a good chance that it will not materialize in a reversal.
The 4-hour chart indicates that once price has surpassed the level of the former high, it came back to test this level as support and found buying pressure here.
It has since continued its increase and formed a 2018 high near $5836.
Dogecoin Price Analysis
After numerous tests earlier in the week, Dogecoin managed to move above a resistance level at $0.00268.
With numerous tests weakening the level, the odds that Dogecoin would break above were increased.
The price managed to move above the level yesterday, the day that market leader Bitcoin moved to form new 2019 highs.
However, the price failed to record the same magnitude of increase as the market leader Bitcoin.
The price of Dogecoin increased around 2.5% for the day whereas the market leader Bitcoin recorded an over 5% increase.
Dogecoin is also recording a loss so far today whereas market leader Bitcoin is following up on yesterdays increases.
Since rising above the resistance level at $0.00268, the price has been consolidating just above this level.
This level will likely provide some support if the price drops but the price looks likely to increase from here with both the 6-hour MACD and RSI increasing.
- Bitcoin records a new high for 2019 and moves closer to an extremely important level at $6150.
- High amounts of selling pressure are expected if Bitcoin can continue its increase to this level.
- A double divergence forms on the daily chart for Bitcoin, but this may not have an impact with weekly momentum currently on the side of buyers.
- Dogecoin also records an increase which brings it above a resistance level at $0.00268.
Bitcoin Forms New 2019 High As Dogecoin Struggles to Keep up [Price Analysis] was originally found on copy trading cryptocurrency | Tech, Privacy, Bitcoin & Blockchain | Blokt.