The cryptocurrency market is currently struggling with unfavorable macroeconomic conditions. Bitcoin, Ethereum, and Dogecoin have spent the past few weeks in sideways formations. New analysis shows we can recover from a recession at above-average volume.
Bitcoin, DOGE, ETH and ADA technical analysis
Bitcoin has been trading between $18,131 and $20,479 since Sept. 14. It is currently in a downtrend in the lateral pattern. If it closes the day below $18,131, it will enter a candlestick pattern pointing to lower prices. If that happens, the bulls will definitely want to protect $18,100 to protect BTC from lower levels and move sideways. Bitcoin has resistance at $19,915 and $21,313 and support at $18,293 and $17,580.
More broadly, Bitcoin’s recent failure to set a trend is notable as it has been immune from the crash in global financial markets. Brendan Fagan, one of the Dailyfx analysts, is among the analysts who see this situation pointing to a decline in the short term:
While the price may eventually drop in the long run as it moves towards a possible recession, I am in favor of a continued decline in the short term.
Ethereum (ETH)
Ethereum is trading in a sideways and slightly downtrend. The most recent bottom was $1,344 on Friday. Prior to that, it had bottomed at $1,190 on Thursday. Also like Bitcoin, Ethereum is developing a new formation on the 24-hour chart. Ethereum has resistance above $1,421.80 and $1,717.41 and support below $1,245 and $1,081.
Dogecoin (DOGE)
Dogecoin has been moving sideways since August 27. Like Bitcoin and Ethereum, it is currently in a slight downtrend. Unlike Bitcoin and Ethereum, which saw their 24-hour trading volume remain stable, Dogecoin’s trading volume is declining. This indicates that an upward or downward movement from the horizontal pattern is approaching. Traders can watch for a breakout with higher-than-average volume to indicate recognition of the pattern. Dogecoin has resistance above $0.065 and $0.075 and support below $0.057 and $0.5.
Cardano (ADA)
Cardano, in particular, was one of the most volatile cryptocurrencies in the current crypto crisis. Cardano (ADA) is currently trading at $0.3667, down 13% in the last 7 days. However, Michael van de Poppe, CEO of Eight Global and a popular crypto analyst, said that Cardano is poised for a price hike.
Elsewhere, DefiYield’s Yevhen Karpenko listed the factors that make Cardano strong in the long run. The analyst says that the Ouroboros consensus mechanism makes Cardano more decentralized than other cryptocurrencies. It turns out that Cardano has over 1500 pools of vallidators.
