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Bitcoin, Ethereum, Dogecoin in positive consolidations
The price of Bitcoin hovered between $ 56,100 and $ 57,400 yesterday, hovering around the MA20 and MA50 moving average with constant support from the MA200 moving average. Now we expect Bitcoin’s price to take a bullish impulse and try again to test the resistance zone at USD 59,000.
- We need to continue this consolidation above $ 57,400 in order for the price to have better momentum and move further towards $ 59,000.
- We have already tested the $ 59,000 zone three times and are now awaiting an interruption in that attempt.
- At the top, the next resistance awaits us immediately, the lower October high of USD 60,000.
- We need negative consolidation by pulling the price below MA200 and retesting the zone at $ 56,000.
- Next support is at $ 55,000 which is the pre-consolidation breakpoint.
- And the maximum potential decline for the next week could be to the $ 53,600- $ 54,000 support zone.
Ethereum chart analysis
Ethereum’s price is turning up and finding support at $ 4,500. ETH is now testing the zone at USD 4,600 with the support of the MA20 and MA50 moving averages. For a possible breakthrough and attack on the previous high of $ 4,784. We can see that the downward pressure is easing and we are slowly returning to the bullish trend.
- We need this positive consolidation to continue above $ 4,600.
- With the support of the MA20 and MA50 moving averages, we are continuing to move towards USD 4,700 and are approaching the previous high at USD 4,784.
- A break above that could jeopardize the current all-time high of $ 4,868 and create a new high, perhaps as high as $ 5,000.
- We need negative consolidation of up to $ 4,500; we test this zone after the check and expect a break below.
- Then we look for the next support at 4400 with additional support in the MA200 moving average.
- Further price cuts can bring us down to $ 4,200 and even a large psychological support zone at $ 4,000.
Dogecoin chart analysis
Dogecoin price never manages to break away from the 0.20000 zone. We tried to recover during that week but it all ended up in the 0.23000 zone. Together with the 38.2% Fibonacci level, this is our first obstacle to any further continuation of the uptrend.
- We need a positive consolidation first above the 23.6% Fibonacci level at 0.21130.
- After this we will get support on the MA20 and MA50 moving average and can move towards 0.22800 to test 38.2% Fibonacci levels.
- The break above takes us to the next resistance at 50.0% and the MA200 moving average to add resistance.
- Below we go to 0.25500 at 61.8%, and if the bullish impulse continues we go to 0.27300 at 78.6% Fibonacci level.
- We need negative consolidation and a 0.20000 price decrease for new support tests.
- If support does not hold we will continue to the November minimum at 0.18600.
- Fall below the drop in prices at the starting point in July and August.
The growth of the crypto market this year in 2021 was insane as the broader growth market tripled and added nearly $ 2 trillion to total market cap. Traditional investors like Charlie Munger find this too difficult to grasp.
Speaking to Australian investors at the Sohn Hearts and Minds conference today, Mr. Munger called this investment environment “a little bit more extreme”. He also assisted China in suppressing “some exuberance” of capitalism. Expressing extreme criticism of Bitcoin and cryptocurrencies, Mr Munger said:
“I think the dotcom boom was dumber in terms of valuation than what we have now. But in general, I think this age is even crazier than the dot-com era. I don’t particularly appreciate participating in these crazy booms, one way or the other. It seems to work; Everyone wants to stack up, and I have a different perspective. I want to make my money by selling people good things, not things that are bad for them. He added that people who create cryptocurrencies don’t think about the customer; they think of themselves. “
Warren Buffett and Munger’s partner at Berkshire Hathaway have also criticized Bitcoin heavily in the past, calling it “rat poison”. According to Buffett’s comments in 2018, Bitcoin has just continued to grow.
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