Bitcoin
Bitcoin (BTC) About to Lose $60,000, Is Shiba Inu (SHIB) Ready for It? Solana (SOL) forms reversal pattern
Arman Shirinyan
The market was coming back, but the current state of affairs doesn’t look good
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Bitcoin is currently on the verge of falling below the $60,000 level, a significant psychological and technical level for the cryptocurrency. As seen in the chart, a descending trendline is clearly applying downward pressure, guiding Bitcoin to form lower lows. This pattern suggests that the downward momentum could continue in the near term.
Current market dynamics show that Bitcoin price is being pressured by this descending trendline. Each attempt to move higher meets resistance, leading to lower highs – a classic indicator of an ongoing downtrend. Notably, trading volume has been decreasing, which typically indicates a weakening of the current trend and potentially sets the stage for a trend reversal. However, current signs suggest that the market is not yet ready to revert to a situation of optimistic.
Adding to the complexity of the moves is the potential formation of a higher low, which could be the first sign of an imminent change in trend. This is a critical observation as it could mean that although the overall trend is down, there is some buying interest at lower levels that prevents further declines, providing a temporary floor for the Bitcoin price.
The immediate future of Bitcoin price largely depends on its interaction with the trendline and key moving averages. Currently, the 50-day exponential moving average (EMA) is around $65,000, acting as potential upper resistance in case of any bullish reversal.
Shiba Inu reaches limit
Shiba Inu is currently going through a critical phase as it hovers around a strong support level at approximately 0.00002260.
The current chart formation features a descending triangle pattern, a typical bearish signal in technical analysis, suggesting that SHIB may be under significant selling pressure. This pattern is forming as SHIB tests its support, making the 0.00002260 level crucial in determining its near-term trajectory. A break below this could lead to a test of the next major support at the 0.00002100 level, aligning closely with the 100-day EMA. It often acts as dynamic support in downtrends, providing a potential recovery zone for the price.
On the other hand, immediate resistance is located around 0.00002400. Exceeding this level could invalidate the bearish pattern and possibly trigger a short-term bullish reversal. However, the convergence of EMAs above this price could complicate any upward moves, potentially limiting gains and increasing volatility.
Given this dynamic, the situation with Shiba Inu remains highly uncertain. The descending triangle, combined with the convergence of the moving averages and key support and resistance levels, suggests that SHIB could experience increased volatility in the near future. This unpredictability makes it a risky asset for traders and investors right now.
Is Solana Aiming for Reversal?
Solana is currently showing signs of a potential reversal pattern. As it approaches the 100-day EMA, we could see a reversal. However, it is important to note that this EMA has not been previously tested, which brings a certain degree of uncertainty about its reliability as support.
The current price movement has brought SOL closer to what can be seen as a critical juncture. The nearest solid support level is established around $128, but this level has already been breached once, increasing the unpredictability of its strength in holding future declines. Such violations can undermine confidence in the level of support, suggesting that it may not be as robust as expected.
Despite these concerns, there are positive signs in the market dynamics. Decreasing volume indicates that selling pressure is decreasing, which could mean sellers are exhausted. This scenario typically sets the stage for buyers to regain control and potentially drive up the price.
However, the volume profile does not support the formation of an inverse Head and Shoulders pattern, a common bullish reversal indicator, raising some doubts about the immediacy of a bullish turnaround.
In the medium term, if buyers are able to capitalize on the reduction in selling pressure, there is a chance for Solana to make significant gains.
About the author
Arman Shirinyan
Arman Shirinyan is a trader, crypto enthusiast and SMM expert with over four years of experience.
Arman firmly believes that cryptocurrencies and blockchain will be in constant use in the future. Currently, it focuses on news, articles with in-depth analysis of cryptocurrency projects, and technical analysis of cryptocurrency trading pairs.