Bitcoin and Ethereum Consolidate Gains, DOGE and SHIB Surge
- Bitcoin price is consolidating below the USD 44,000 resistance.
- Ethereum is stable above USD 3,300, XRP still below USD 0.80.
- DOGE and SHIB gained over 10%.
Bitcoin price spiked above the USD 44,000 level before starting a downside correction. BTC traded below the USD 43,600 level. It is currently (12:21 PM UTC) consolidating gains near USD 43,900 and might start a fresh increase above USD 44,000.
Similarly, most major altcoins are showing positive signs. ETH is stable above USD 3,300 and is facing hurdles near USD 3,380. XRP could gain momentum if there is a close above the USD 0.80 level. ADA is struggling to settle above USD 1.30.
Total market capitalization
After a strong upward move, bitcoin price struggled to stay above the USD 44,200 level. BTC corrected lower and traded below USD 44,000. It is now consolidating gains near the USD 43,900 level. On the downside, an initial support is near the USD 43,200 level. The main support is now forming near USD 43,000.
If there is a fresh increase, the price might face resistance near the USD 44,000 level. The next major resistance is near USD 44,500, above which the price might rise towards the USD 45,500 level.
"Bitcoin has just printed a clear breakout above the USD 43,000 levels, which was the first local resistance of its short-term trading range, riding the wave of a surprisingly positive investor sentiment following the release of the US CPI report. The context and timing of this relief rally give reasons for cautious optimism that we may be on the verge of the short-term downward trend reversal," Mikkel Morch, Executive Director & Risk Management at crypto/digital assets hedge fund ARK36, said in an emailed comment.
According to him, since the actual inflation data correspond to the forecast, the markets now seemed primed for more upside in the short-term as investors evidently feel a little more adventurous.
"The most important resistance will be the USD 46,000 level and we expect the price to consolidate below this line for a while. However, if the bulls don't eventually manage to decisively break through it, the short-term bullish thesis will be invalidated," Morch added.
Ethereum price also followed a similar pattern after it broke the USD 4,400 resistance zone. ETH corrected lower and traded below USD 3,350. However, it is trading above the USD 3,300 support. The next major support is near USD 3,250, below which the price accelerate lower.
On the upside, the price is facing resistance near USD 3,400. The next major resistance is near USD 3,420, above which the price might test USD 3,500.
ADA, BNB, SOL, DOGE, and XRP price
Cardano (ADA) retreated lower from the USD 1.35 resistance. It traded below the USD 1.30 level. The next major support is near USD 1.28. Any more losses might send the price towards USD 1.25.
Binance coin (BNB) is consolidating gains above the USD 480 level. The next key resistance is near USD 488. A proper close above USD 488 could send the price above the USD 500 level. If not, it might correct lower to USD 465.
Solana (SOL) gained pace for a move above the USD 150 resistance. It is now approaching the USD 155 resistance. If there is a downside correction, the price might find support near the USD 140 level.
DOGE surged above the USD 0.165 level. It is up 10% and trading near the USD 0.172 level. The next major resistance is near the USD 0.180 level, above which the price could rise towards the USD 0.20 level.
XRP price is consolidating below the USD 0.800 resistance. An immediate support is near the USD 0.765 level, below which the price may perhaps test USD 0.750. On the upside, a break above USD 0.800 could accelerate gains.
Other altcoins market today
Many key altcoins are up over 5%, including LUNA, SHIB, FTM, ONE, KLAY, ROSE, XEC, KDA, and XDC. Out of these, SHIB rallied 10% and there was a break above the USD 0.000030 level.
"Shibarium, the gaming video game Oshiverse, and ShibaSwap have all contributed to Shiba Inu's surging pricing, placing it ahead of competitors such as Dogecoin, which is still a meme currency play with minimal development," Vladimir Kardapoltsev, CEO of PointPay, a blockchain-based financial ecosystem, said in an emailed note.
Also, according to him, "to combat Shiba Inu's wrong impression," the average holding duration for SHIB must be significantly raised.
"This will also help to decrease the initial Shiba coin's price volatility. It is worth mentioning that in just over five weeks, the average holding duration for Shiba coins on Coinbase has climbed from six to 32 days," Kardapoltsev added.
To sum up, bitcoin price is consolidating gains above the USD 43,000 level. If BTC stays above USD 43,500, there could be a fresh increase above USD 44,000.