Monat: Juni 2023

• A descending triangle pattern keeps the bearish bias alive
• Dogecoin fails to follow Bitcoin’s steps
• US data keeps surprising positively, making further rate hikes from the Fed very likely

Cryptocurrency investors were thrilled to see Bitcoin jumping back above $30k recently. It is Bitcoin that leads the cryptocurrency market, and hope has emerged that other cryptocurrencies will follow.

But it wasn’t the case for Dogecoin. In fact, the technical picture looks bearish, and the fundamental one keeps hinting at strong US data. Hence, if anything, the strong dollar will keep pushing against its fiat rivals, and the cryptocurrency market will take its clues from there.

Earlier today, the US GDP was revised higher. This was the Final GDP, and usually, there are no revisions to the data.

Only this time, the Final GDP came out much stronger than expected, at 2% vs. 1.4% expected. As such, the dollar rose across the board, and the Fed will likely hike the funds rate two more times this year, as suggested by Jerome Powell during this week’s speeches.

Dogecoin chart by TradingView

A descending triangle keeps the bearish bias alive

Dogecoin’s bearish trend continues as the series of lower lows and lower highs remains intact. All the previous spikes failed to break above the last lower high, so bears are still in control.

Only a move above $0.1 should shift the bias from bearish to bullish.

Until then, one can see a descending triangle pattern and it looks like it is only a matter of time until the horizontal support gives up.

Summing up, the bearish bias persists, and only a close above $0.1 will put bulls back in control. Until then, expect traders to sell any bounce.

The post Dogecoin technical analysis update – bears are still in control appeared first on CoinJournal.

• Solana price went vertical after the launch of deBridge.

• This feature will make it possible for Solana to communicate with EVM.

Solana price staged a strong comeback on Thursday as investors cheered a new bridge in the ecosystem. SOL jumped to a high of $18.21, which was much higher than this month’s low of $13.56. It was among the best-performing cryptocurrencies on Thursday.

Solana and Ethereum bridge

Solana is a leading blockchain platform that was once the biggest players in industries like decentralized finance and non-fungible tokens. At its peak, its DeFi ecosystem had billions of total value locked (TVL). All this came tumbling down following the collapse of FTX and Alameda Research. The two companies were among the biggest contributors to its ecosystem.

The main reason why Solana price jumped is the launch of deBridge feature that allows Solana to communicate with Ethereum. This is the first time that the two ecosystems can communicate with each other. 

They can also communicate with other Ethereum Virtual Machines (EVM) like Arbitrum and Optimism. Without this bridge, the alternative communication process is using wrapped and other derivative tokens. In a note, the founder of deBridge said that:

“Users and projects that needed to transfer liquidity to Solana have always faced limitations due to the lack of liquidity in Wormhole pools and high slippage during the exchange of the wrapped assets, which often made developers have to deal with non-liquid Wormhole assets.”

Solana price also jumped as signs emerged that the new management will relaunch FTX. As we have written before, the management is speaking with counterparties as it works to relaunch the exchange. It is not clear what this relaunch will mean for Solana and other companies that FTX had invested in like Near Protocol and Serum.

Solana price prediction

The daily chart shows that the SOL price has been under pressure in the past few months. This trend saw it drop to the January low of $13.35 this month. It has made a modest recovery and is now attempting to move above the 50-day moving average. It has also jumped above the resistance at $16.05.

The red flag I have with Solana is that this jump has not been accompanied by higher relative volume. Therefore, I suspect that it will be short-lived, which will see it drop to the support at $16. The only caveat for the bearish view is if Bitcoin stages a comeback above its year-to-date high of $31,400.

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The post Solana price spikes after the deBridge launch: Beware of low volume appeared first on CoinJournal.

• Bitcoin price found support at an inverse head and shoulders pattern’s neckline
• The measured move points to more upside for Bitcoin
• There is no significant resistance until the $48k level

Bitcoin’s price holds above the key $30k level, and the price action is bullish while above $25k. This is the level that offered support on the recent downward trend as the neckline of an inverse head and shoulders pattern rejected the price.

From a fundamental perspective, Bitcoin remains bullish while the US dollar’s bearish trend continues. While strengthening lately, the dollar’s move higher is not convincing, as reflected by the EUR/USD exchange rate still hovering around 1.10.

Yesterday, the Fed’s Chair, Jerome Powell, participated in a panel at the ECB Forum in Sintra. He was clear in saying that the Fed did not pause but skipped a rate hike in June.

While his comments were hawkish, so were the comments of other panelists, such as the Bank of England’s Governor or the European Central Bank’s President. Therefore, the dollar weakness may dominate markets during the summer months should investors perceive other central banks as more hawkish than the Fed.

Bitcoin chart by TradingView

Did Bitcoin bottom in late 2022?

One question is on every crypto investor this year – did Bitcoin bottom in late 2022?

Sure enough, the price action following the December 2022 low gives bulls hope. Bitcoin’s price action also suggests that a major bottom might be in place.

An inverse head and shoulders pattern points to more upside. The fact that the market retested the neckline and was rejected by it shows that bulls are still in control. In other words, the price action reinforces the bullish case.

Finally, now that Bitcoin’s price is at the year’s high, there is no significant resistance until $48k. This is the 2022 high, and it looks like the market is building energy to break higher.

The post Bitcoin price update – bullish inverse head and shoulders pattern points to more upside appeared first on CoinJournal.