U.Today: BTC took a heavy hit after hitting the $71,000 threshold, losing 14% of its value and plummeting below $60,000. However, there is a realistic chance of a reversal in the foreseeable future as BTC has reached the lower threshold of the market's sideways channel.
First, BTC’s price action indicates a significant buying zone at $58,000, a historical support level. The 200-day moving average, or the black line on the chart, and this support level imply that a Bitcoin bounce may be imminent.
The volume profile shows more encouraging signs. Due to the recent decline, trading volumes have increased, suggesting that buyers remain very interested in the product at these reduced prices. Increased activity usually indicates an impending price reversal because it is a buildup of investors anticipating profits in the future. Moving averages offer an additional level of understanding.
Although these levels typically serve as dynamic support and resistance zones, the chart indicates that Bitcoin is currently trading below the 100-day and 50-day exponential moving averages. A break above these moving averages in Bitcoin suggests a possible trend reversal and a move in the direction of bullish momentum.
For now, there is no distinctive fuel for the asset and it is unlikely to appear in the foreseeable future unless the ETF boosts the market as a whole.
gets ready
XRP is in the process of making another reversal attempt to break the downtrend that occurred after the prolonged sideways trend. We are aiming to break above the 26 EMA and achieve a substantial stabilization and reversal. However, what is really needed at the moment is momentum.
The chart indicates that XRP has struggled to maintain its upward momentum and has continued to fail to break through significant resistance levels. To suggest a possible trend reversal, XRP needs to break above the 26-day exponential moving average (EMA). This level has served as a barrier and a successful breakout could herald the start of a bullish phase.
However, volume analysis reveals that traders have different opinions. Trading volume has increased occasionally, but not enough to allow for a long-term bullish trend. Significantly higher buying volume is needed for XRP to maintain its reversal attempt. This would give the market the boost it needs to break through resistance levels and keep prices high.
XRP is currently in the neutral zone, according to the Relative Strength Index (RSI). There is potential for an upward move because this shows neither overbought nor oversold conditions.
aim higher
Dogecoin is going to test the price threshold of $0.13 in the coming days, which suggests the current composition of the market. We will most likely see a test of the 200 day EMA threshold and a subsequent breakout, if there is enough momentum.
The 200-day exponential moving average (EMA) is represented by the $0.13 mark on the chart, indicating that Dogecoin has found it difficult to break above significant resistance levels.
A successful break above this level, which has historically been a major resistance point, could signal a bullish reversal. There may be cause for concern, as volume analysis indicates that trading activity has been relatively subdued. Dogecoin needs a considerable increase in buying volume to continue its uptrend.
The momentum needed to convincingly break above the 200 EMA may be hampered by the lack of consistently high trading volumes. Also notable are the relative positions of the 100 and 50 day EMAs. At the moment, Dogecoin is trading below these two moving averages, which usually denotes a downward trend.
But DOGE would be a very bullish indicator if it could generate enough buying pressure to break through these levels. The Relative Strength Index (RSI) offers additional insight.
The fact that Dogecoin’s RSI is currently hovering around the neutral zone indicates that there is still potential for an upside move without an overbought situation. A move above the 50-point RSI threshold would increase confidence in a possible bullish breakout.
This article was originally published on U.Today.
