Armand Sirignan
The market was coming back, but the current situation doesn't look good.
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Bitcoin is currently on the brink of falling below the $60,000 level, which is a psychologically and technically important level for cryptocurrencies. As observed on the chart, the downtrend line is clearly applying downward pressure, leading Bitcoin to form lower lows. This pattern suggests that the downward momentum may continue in the near term.
Current market dynamics indicate that Bitcoin price is being squeezed by this downtrend line. Every time it tries to push upward, it encounters resistance, leading to a fall in the highs. This is a classic indicator of a continued downtrend. Of note is that trading volume is decreasing, which usually indicates a weakening of the current trend and potentially setting the stage for a trend reversal. However, current signals suggest that the market is not yet ready for a bullish reversal.
Adding to the complexity of the move, higher lows may form, which could be the first sign of an impending trend change. This shows that even though the overall trend is bearish, there is some buying interest at lower levels to prevent further declines, providing a temporary floor for Bitcoin price. This is an important observation because it is possible.
The immediate future of Bitcoin price will largely depend on the interaction between the trend line and the major moving averages. The 50-day exponential moving average (EMA) currently sits at around $65,000, which acts as potential upside resistance in the event of a bullish reversal.
Shiba Inu has reached the threshold
Shiba Inu is currently moving around a strong support level around 0.00002260 and is entering an important phase.
The current chart formation shows a descending triangle pattern, a typical bearish signal in technical analysis, suggesting that SHIB may be under significant selling pressure. This pattern is forming as SHIB is testing support, and the 0.00002260 level will be important in determining its near-term trajectory. A break below this could test the next major support at the 0.00002100 level, which roughly matches the 100-day EMA. It often acts as dynamic support in a downtrend and provides a potential rebound zone for the price.
Conversely, immediate resistance lies around 0.00002400. Overcoming this level could invalidate the bearish pattern and trigger a short-term bullish reversal. However, a convergence of the EMA above this price point could complicate any upward movement, potentially limiting profits and increasing volatility.
Given these dynamics, the situation surrounding Shiba Inu remains highly uncertain. The downward-pointing triangle, combined with the convergence of the moving averages and major support and resistance levels, suggests that SHIB may experience increased volatility in the near future. This unpredictability makes it a risky asset for traders and investors at the moment.
Will Solana aim for a turnaround?
Solana is currently showing signs of a potential reversal pattern. We may see a reversal as we approach the 100-day EMA. However, it is important to note that this EMA has not been tested before, so there is some uncertainty about its reliability as support.
Current price trends are moving SOL closer to what could be considered a critical juncture. The nearest solid support level is set around $128, but this level has already been breached once, further increasing the unpredictability of the strength that sustains future declines. Such breaches can undermine confidence in support levels, suggesting that they may not be as robust as expected.
Despite these concerns, there are some positive signs in the market trend. Decreasing volume indicates that selling pressure is decreasing, which could mean sellers are becoming exhausted. This scenario typically sets the stage for buyers to regain control and prices to potentially rise.
However, the volume profile does not support the formation of an inverted head-and-shoulders pattern, a common bullish reversal indicator, casting some doubt on the immediacy of the bullish reversal.
In the medium term, Solana has a chance to make significant profits if buyers can take advantage of the reduced selling pressure.
About the author
Armand Sirignan
