Crypto Market Divergence: Bitcoin & Ethereum Correct While Dogecoin Shows Upside Potential
Crypto Market Divergence: Bitcoin & Ethereum Correct While Dogecoin Shows Upside Potential
The crypto market is currently exhibiting divergent trends. Bitcoin (BTC) is undergoing a significant correction, failing to hold key support levels and showing signs of continued downside pressure. Similarly, Ethereum (ETH) has entered a bearish zone, experiencing fresh declines and trading below crucial moving averages, with technical indicators suggesting further losses.
However, Dogecoin (DOGE) stands out with a bullish outlook. Analysts highlight a constructive pattern of rising channels and higher lows, breaking out of a long-term downtrend. Despite market volatility for other assets, DOGE is seen by some as having strong upside potential, particularly against BTC, with seasonal factors also favoring gains.
Bitcoin and Ethereum Face Mounting Downside Pressure
Bitcoin (BTC) price has entered a deeper correction, struggling to maintain levels above $124,000 and even $120,000. The cryptocurrency is currently trading below its 100-hourly Simple Moving Average, with a key bearish trend line forming near $122,750. Bears have pushed the price below $121,200, establishing a low at $119,810. Analysts warn that if BTC fails to overcome the $122,750 resistance, it could initiate a fresh decline, potentially testing supports at $120,750, $120,000, and even extending losses toward $116,500 or $115,500. Technical indicators like the Hourly MACD and RSI are gaining momentum in the bearish zone and are below the 50 level, respectively, underscoring the prevailing downside pressure.
Ethereum (ETH) is mirroring Bitcoin's bearish sentiment, having started a fresh decline below $4,600 and $4,500. The altcoin is trading below $4,450 and its 100-hourly Simple Moving Average, confirming a bearish trend. A significant bearish trend line with resistance at $4,385 is impacting ETH/USD. After failing to stay above $4,550, ETH price dipped into a bearish zone, testing the $4,270 support. While a minor recovery attempt was seen, bears remain active near $4,380. Failure to clear the $4,450 resistance could lead to further declines towards $4,320, $4,270, and potentially $4,150 or $4,120. Both the Hourly MACD and RSI for ETH/USD are exhibiting bearish momentum, indicating a challenging short-term outlook.
Dogecoin Shows Bullish Resilience and Upside Potential
In contrast to BTC and ETH, Dogecoin (DOGE) is displaying a robust bullish pattern, with analysts suggesting it is not too late to consider an entry. The meme coin's spot pair is grinding higher within a well-defined rising channel that has been active since early summer, characterized by a sequence of higher lows. Price is currently near $0.26, with technical analysis pointing to potential drives toward the $0.33 channel top. A long-term downtrend line from last year's $0.48 peak has been decisively broken and retested, turning prior resistance into new support around $0.25–$0.26. Analysts like IncomeSharks and Cantonese Cat emphasize the continued formation of higher lows as a constructive sign, with the path of least resistance potentially leading to prior local highs near $0.31.
Furthermore, the DOGE/BTC pair is highlighted as a "highest conviction trade" by Degentrading. Historically, Dogecoin has performed exceptionally well during Bitcoin breakouts. Seasonally, October is noted as a strong month for DOGE returns. The monthly DOGE/BTC chart shows the pair at a critical juncture, wedged between key moving averages. Sustained closes above the 25-month moving average (~0.00000223 BTC) could signal a significant momentum shift towards bulls, opening the door for tests of higher resistance levels. While risks are present, with key supports identified around $0.24 for spot and 0.00000187 BTC for the pair, the overall sentiment among analysts points to continued constructive patterns and significant upside potential for Dogecoin.