Crypto Market Turmoil: Bitcoin and Dogecoin Face Price Plunges Amidst Volatility

 Crypto Market Turmoil: Bitcoin and Dogecoin Face Price Plunges Amidst Volatility

Bitcoin and Dogecoin Face Price Plunges Amidst Volatility(Image-Getty)

Amidst significant volatility, the cryptocurrency market witnessed tumultuous shifts this week, with both Bitcoin and Dogecoin grappling with substantial price declines, as per analyses conducted by Coinpedia on TradingView.

Bitcoin, the dominant player in the crypto sphere by market capitalization, encountered a notable setback on Tuesday, experiencing a 6% drop in its price. Coinpedia's analysis indicates an overall 8% decline for the week. This downward trajectory was spurred by a widespread frenzy of selling, as sellers seized control of Bitcoin's short-term price trajectory. Despite this downturn, Bitcoin found a momentary reprieve, managing to eke out a 1% intraday growth from the crucial support level of $65,000.

Of particular note was the daily net inflow of $40 million into US Bitcoin Spot ETFs, suggesting a potential avenue for recovery. However, Bitcoin recently underwent testing and subsequent rebound from the $65,000 support level, with two consecutive bearish candles on the daily chart signaling a negative trend.

The price approached the dynamic support at the 50-day EMA, coinciding with the 23.60% Fibonacci level. Additionally, a significant long liquidation event worth $357 million on Tuesday set a decidedly bearish tone in the market.

Amidst ongoing consolidation, a bullish flag pattern emerged, hinting at a possible continuation of the prevailing trend. Consequently, a rebound could potentially propel prices beyond the $75,000 mark, with $100,000 standing as a post-halving target. Conversely, a breach below the 50-day EMA might trigger a test of the 38.20% Fibonacci level, pegged at $60,289.

Meanwhile, amidst the market turmoil, Dogecoin (DOGE), the meme-inspired cryptocurrency, experienced a sharp 17% decline, echoing the broader market crash and emphasizing its inherent volatility. However, this price plunge has created a potential entry point for long-term investors and HODLers.

With two consecutive red candles, DOGE revisited the $0.18 mark, signaling a prevailing bearish sentiment. Nonetheless, a dragonfly candle observed at $0.1850 indicated a bullish attempt to counter the downward trend.

Analysts, however, cautioned about a dip in the ADX line and a potential negative crossover in the VI lines, which could herald further turbulence. The retest at $0.18 was aligned with the 50% Fibonacci level, suggesting robust bullish support.

Indications pointed towards a potential reversal, offering an opportunity to "buy the dip" in anticipation of forthcoming gains. If momentum regains strength, DOGE could target $0.2964, with immediate support lying at $0.18. Conversely, a sustained decline below $0.18 could prompt DOGE to retest the 50-day EMA at $0.1532.

Despite the recent downturn, Dogecoin's substantial market capitalization has ensured its prominence as a leading meme coin, with speculations about DOGE reaching $1 underscoring the optimistic long-term sentiment among investors.

As per the latest updates from CoinMarketCap, Bitcoin has witnessed a modest increase, trading at $66,722.80, reflecting a 1.01% rise over the last 24 hours. Conversely, Dogecoin has experienced a slight decline, with its price dipping to $0.184155, down by 2.50% within the same timeframe. This contrasting movement between two prominent cryptocurrencies underscores the ongoing volatility and unpredictable nature of crypto investments, with Bitcoin exhibiting resilience while Dogecoin faces downward pressure amidst the market's fluctuations.