Bitcoin (BTC) Can't Break $100,000, Dogecoin (DOGE) Can Sniff $0.5, Did Shiba Inu (SHIB) Form Hidden Cup and Handle Pattern?
2024-12-09

As it continues to struggle to break the historic $100,000 barrier, many investors have found the recent price action of Bitcoin to be both exciting and frustrating. Due to strong market forces opposing the asset's upward momentum, this crucial level has turned into a psychological and technical resistance. The asset has been consolidating around $100,000 following its robust rally from $25,000 earlier this year, according to an analysis of Bitcoin's chart.
Though the recent stagnation suggests caution, the surge brought hope. The aggressive selling pressure from whales is a primary cause of this pause. The price of Bitcoin has been under a lot of downward pressure as a result of these big holders selling off their holdings around the $100,000 mark. This pattern is supported by the recent increase in sell-side volume, which makes it more difficult for the asset to acquire sufficient momentum to overcome the resistance.BTCUSDT Chart by TradingView">
Overall, this price movement is similar to what has been seen in past market cycles. Bitcoin's historical patterns as previously discussed point to significant corrections and consolidations close to significant psychological levels prior to subsequent movements. Similarly, the $100,000 threshold functions as a barometer for the strength of the asset and the mood of the market. Another element preventing upward momentum is early investors' profit-taking.
Both long-term holders and short-term traders are cashing in on their gains as Bitcoin has risen more than 300% from its lows this year, which is adding to the selling pressure. Technically speaking, support levels at $84,000 and $93,000 are still crucial. While a clear break above $100,000 would probably draw new buying interest, a breakdown below these levels might lead to a more significant correction. For now, Bitcoin's ability to withstand selling pressure and rekindle bullish sentiment will determine whether it reaches $100,000 and beyond. History indicates that Bitcoin prospers in the midst of the real struggle.
Dogecoin's suspicious ascent
Both retail traders and institutional players have taken notice of Dogecoin as it is getting closer to the psychological level of $0.5. But the graph conveys a warning as much as an optimistic message. The fact that DOGE is presently trading inside a clearly defined ascending channel indicates both vulnerability and bullish momentum.
Dogecoin's market is optimistic as evidenced by the ascending channel's consistent higher highs and higher lows. However, problems could arise if there is a breakdown below this channel's lower boundary.
Such a move might signal a major price decline since it would signify a breach of the support trendline. The current uptrend may be reversed if DOGE drops below $0.38, the next crucial support level that could lead to a deeper correction. In contrast, DOGE might surpass $0.5 if it breaks above the channel's upper boundary.
This would probably spark new interest in purchasing, accelerating the upward trend. Dogecoin would require higher trading volume and persistent bullish sentiment for this to occur as both have been erratic in recent sessions.
Although DOGE appears to be in a reasonably healthy zone based on the current RSI levels, a pullback could be preceded by a move into overbought territory. Furthermore, there has been a slight decline in trading volumes, which is a red flag for bulls. If volume confirmation is lacking, any breakout could be short-lived.
Shiba Inu's hidden pattern
The rounded bottom that formed between mid-June and late-October appears to be the cup in this scenario, while the slight consolidation phase in early November could be interpreted as the handle. The general shape is consistent with the traits of this traditional pattern even though it is not a textbook example. If verified, SHIB might see a bullish breakout that pushes it to higher price levels.
At the moment, SHIB is trading just below its most recent local highs at about $0.00003179. To achieve the bullish scenario Shiba Inu must overcome the immediate resistance level at $0.00003500. If this level is successfully broken, the price may move toward its next target, which is $0.00004000, a crucial psychological barrier for the asset. The lower limit of the handle and $0.00002700 provide SHIB with strong support on the downside.
The bullish pattern may be invalidated and further retracement may result if prices drop below this level. The previous consolidation occurred at $0.00002200, which would be the next critical support. But in order to fully validate the cup and handle pattern, SHIB will require a surge in trading volume, which has been comparatively low in recent sessions. Determining whether the breakout has the momentum to hold itself or if it runs the risk of turning into a false signal will depend on this.