U.Today -'s New Year's rally has stalled, raising concerns that the bullish momentum may be waning. According to the given chart, Bitcoin is currently trading at $104,899, down 1.21% after reaching $106,214 and then pulling back slightly. The overall trend remains bullish, but fatigue is starting to show. The key finding of this chart is how close Bitcoin is to the uptrend line.
The bull market that started in late October remains strong as Bitcoin is still trading above key support levels. In particular, the 50 EMA provides reliable and dynamic support, and the $98,400 and $97,500 levels could act as a safety net if selling pressure increases. You should also pay close attention to the volume. The bulls may be losing momentum if recent trading reveals a decline in buying volume.
The new wave of buyers was likely triggered by the breakout above $106,000, but the lack of follow-through suggests a temporary decline rather than a complete reversal of the trend. For now, Bitcoin’s short-term course is highly dependent on whether it can sustain support above the trend line. The next important support is near $90,000. If this structure breaks down, prices may fall further.
For the time being, Bitcoin will continue to maintain its bullish stance. Such corrections are common during prolonged bull markets, and the uptrend is still intact. To confirm the next rally, Bitcoin will need to close well above its previous high in order to continue rising. If this is not done, the market may cool and enter a broader consolidation phase.
Weaknesses of
Ethereum is showing signs of weakness after failing to maintain momentum from its recent local peak near $4,100. After a slight retrace, the price is now down 0.69% to $3,867. This decline has raised concerns about a potential bearish trend forming on Ethereum's charts.
A fall from recent highs is the first warning sign. Ethereum is currently struggling to sustain above the key short-term support level, the 20-day EMA, which is currently centered around $3,707 after weeks of solid bullish activity. If ETH is unable to sustain this level, the 50 EMA near $3,355 will be the next important support.
A decline below this range could signal a change in market atmosphere and push ETH closer to the psychological mark of $3,000. There is also the issue of volumetric data. Ethereum soared in November, but recent sessions have shown a decline in purchasing volumes.
The bulls may be losing momentum, as the decline in buying pressure indicates, and ETH will be exposed to further selling pressure. Technically speaking, a bearish divergence is starting to form on the Ethereum price chart. The Relative Strength Index (RSI) is showing signs of stagnation around 63, a level that often signals a loss of bullish momentum despite prices reaching local highs.
If the RSI continues to decline, a deeper bearish trend could be confirmed. Even with a bearish outlook in the short term, Ethereum's overall long-term trend remains positive as long as it remains above key support levels. The $3,707 and $3,355 support zones are very important for investors to monitor. A rebound from these levels could be achieved to revive bullish momentum and lay the foundations for a possible recovery.
decline of
Dogecoin price is still falling as it tries to break above an important support level. Meme Coin is currently trading at $0.386, down about 2.04% over the past day, and its technical outlook remains concerning. The ascending channel that DOGE used as key support during its recent rally has clearly broken down in the company's recent price action.
Currently, the $0.45 area is a strong resistance as the bulls are unable to maintain momentum. Dogecoin could soon approach the 50-day EMA, currently at $0.35, as a result of this breakdown. It is concerning that this asset is testing this level so soon after the rally, despite providing strong technical support.
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The decline in volume due to this pullback further emphasizes the decline in buying pressure. With not much demand, DOGE bulls are reluctant to intervene, which could cause the asset to fall further. If the 50 EMA does not hold, the $0.28 mark will be the next important support.
A decline below this could pave the way for a more severe correction towards $0.21, a level not seen since the last big break in November. Although not oversold yet, DOGE's current position near 56 on the RSI (Relative Strength Index) front indicates that downside momentum is increasing. If the RSI continues to fall, the market could confirm the bearish dominance.
This article was originally published on U.Today
