Bitcoin, Ethereum and Dogecoin — Daily Technical Analysis | 18.05.2021
Bitcoin (BTC)
Bitcoin price is likely forming a double bottom pattern near the $42,150 zone against the US Dollar. BTC is showing positive signs and it could climb towards $47,000.
Bitcoin is finding a strong buying interest above the $42,000 and $42,150 support levels. The price is still trading well below $47,000 and the 100 hourly simple moving average. There was a break above a connecting bearish trend line with resistance near $44,500 on the hourly chart of the BTC/USD pair. The pair is likely forming a short-term double bottom pattern with support near $42,150.
The pair is now consolidating above the trend line and $44,000. Immediate resistance is near the $45,000 level. The first key resistance is near the $46,000 level.
Any more gains could lead the price towards the $47,000 resistance zone. The 100 hourly simple moving average is also sitting near $47,000 to act as a hurdle in the near term.
If bitcoin fails to clear the $45,000 and $46,000 resistance levels, there is a risk of a fresh decline. Initial support on the downside is near the broken trend line and $44,000.
The main support is now forming near the $42,150 level (the double bottom zone). A downside break below the $42,150 and $42,000 support levels could spark another strong decline in the near term.
Dogecoin (DOGE)
On the daily timeframe, Dogecoin showed some sideways movement as bulls prepared for the next upswing. The channel between $0.523 and $0.373 was bolstered by the 20-SMA (blue) and formed a reliable buy zone should another dip occur.
As mentioned earlier, breaking above $0.569 resistance could trigger another rally in the DOGE market. Steering clear of $0.73-resistance would heighten the chances of DOGE touching $1. However, bearish conditions still presided and had to be countered first before any talks of an upswing.
Ethereum (ETH)
Ethereum would need to move through the $3,327 pivot and the 23.6% FIB of $3,369 to bring the first major resistance level at $3,546 into play.
Support from the broader market would be needed, however, for Ethereum to break back through to $3,500 levels.
Barring an extended crypto rally, the first major resistance level would likely cap any upside.
In the event of a breakout, Ethereum could test the second major resistance level at $3,809.
Failure to move through the $3,327 pivot and the 23.6% FIB of $3,369 would bring the first major support level at $3,064 into play.
Barring another extended sell-off, however, Ethereum should steer clear of the second major support level at $2,845.
