U.Today – Riding on the wave of market optimism brought on by the recent surge above $68,000, the market is starting to show signs of recovery. A potential golden cross, one of the most important technical indicators, is approaching and Dogecoin has been trying to break through important resistance levels while Bitcoin has taken the lead in this market rally.
This phenomenon occurs when a short-term moving average crosses above a long-term moving average, which usually signals a reversal in the direction of bullish momentum. Dogecoin is currently trading near the 100-day EMA, a significant level that, if crossed, may indicate that the bearish sentiment related to the recent death cross is coming to an end.
The crossing of a short-term moving average below a long-term moving average, as has happened in the past, is known as a death cross and suggests that a major downtrend may be imminent. However, this situation could change thanks to the current optimistic market sentiment.
Dogecoin is currently testing the 100 EMA resistance after trading above the 200 EMA, according to a technical chart analysis. If this level breaks, it may lead to a golden crossover where the 50 EMA crosses above the 200 EMA, confirming the bullish trend and possibly triggering a long-term price increase.
With 77% of DOGE holders in profit at current prices, on-chain data lends credence to this optimistic assessment. The substantial concentration of top holders shows that important market players remain interested in and supportive of the situation. Bullish indicators from the network’s on-chain metrics also point to increasing network activity, which frequently occurs before price increases.
Bitcoin rises to $70,000
Bitcoin is currently consolidating around $68,000 and is primed for a larger price rally. The significance of this level lies in the possibility that if broken, it could trigger a push towards $70,000 and a long-term price reversal.
The importance of this $68,000 boundary cannot be overstated. It acts as a significant resistance level and breaking through it could trigger a new round of buying pressure and send Bitcoin soaring. A potential breakout that could herald the start of an uptrend is what traders and investors are closely watching at this level.
But we must also take into account the technical indicators that are active. The convergence of the 50-day and 100-day exponential moving averages (EMA) suggests a possible crossover.
A bearish signal, also known as a death cross, can be seen if the EMA 50 crosses below the EMA 100. This could halt the bullish momentum and lead to further selling pressure. The market remains cautiously optimistic despite the looming danger of a death cross.
The psychological $70,000 mark would be the next target for Bitcoin if it manages to successfully break through the $68,000 resistance. Reaching this milestone could accelerate the price rally as it would attract more institutional investors and retail traders. Bitcoin could reach and even surpass its all-time highs if there is a persistent surge above $70,000.
slowly receding
Solana is consolidating at around $185, a key point that can lead to a substantial advance. Overcoming this level, which has proven to be a potent resistance point, can pave the way for the continuation of the long-term uptrend.
This consolidation stage suggests that traders are keeping a close eye on the next move. Solana’s more ambitious target of $200 could be achievable with a successful break above $185. Psychologically speaking, this level could attract more clients and push the price even higher. However, it is worth noting that there is not much trading volume at the moment. Sometimes, this drop in volume suggests a possible reversal.
Solana price could fall before attempting a breakout again if buying pressure does not increase. Although traders should monitor volume as it can offer additional insight into the future course, market sentiment remains cautiously optimistic.
This article was originally published on U.Today
