Bitcoin, Ethereum and Dogecoin — Daily Technical Analysis | 03.06.2021
Bitcoin price made another attempt to clear the $38,000 resistance against the US Dollar, but it failed. BTC is correcting lower, but it might find bids near the 100 hourly SMA.
Bitcoin is still facing a strong resistance near the $38,000 zone. The price is currently trading well above $36,500 and the 100 hourly simple moving average. There is a connecting bullish trend line forming with support near $36,400 on the hourly chart of the BTC/USD pair. The pair must stay above $36,000 and the 100 hourly SMA to remain in a positive zone.
On the upside, an immediate resistance is near the $37,600 level. The first major resistance is near the $37,850 level. The main barrier is still near the $38,000 zone. A clear break above the $38,000 zone is needed for a push towards the $40,000 level.
If bitcoin fails to clear the $38,000 resistance, it could correct lower. An initial support on the downside is near the $37,000 level.
The first major support is near the $36,500 level and the 100 hourly simple moving average. If there is a downside break below the $36,500 support and then the trend line, the price could start a major decline in the near term.
Ethereum would need to avoid a fall back through the $2,687 pivot to bring the 38.2% FIB of $2,740 and the first major resistance level at $2,822 into play.
Support from the broader market would be needed, however, for Ethereum to break back through to $2,800 levels.
Barring an extended crypto rally, the first major resistance level would likely cap any upside.
In the event of a broad-based crypto rally, Ethereum could test resistance at $3,000. The second major resistance level sits at $2,938.
A fall back through the $2,687 pivot would bring the first major support level at $2,572 into play.
Barring an extended sell-off, however, Ethereum should continue to steer clear of sub-$2,400 levels. The second major support level at $2,437 should limit the downside.
The Dogecoin market witnessed a nearly 60% surge in its value from $0.28 to $0.45 within two days. This could be attributed to the ‘Coinbase effect’. However, this extreme bullishness will be followed by an equivalent fall, as no surge can sustain without necessary corrections.
At the time of writing, DOGE traded at $0.4317 as Parabolic SAR markers aligned under the candlesticks. This marked a bullish market as the price was on an upward trend. Interestingly, 50 MA remained lower under the candlesticks indicating the high momentum of the trend.
Despite bullish indications, the current price was supported by very few traders and a reversal could take place soon. This was affirmed by Visible Range Indicator which marked the point of control at $0.3319, a value 24% lower than the current price.
As the bullish market loses steam, the price turnaround will push DOGE to test $0.38 support.