Bitcoin
Top cryptocurrencies to watch this week: BTC, DOGE, WIF
Bitcoin (Bitcoin) is among the top cryptocurrencies to watch this week after the digital asset posted moderate gains following a last-minute rally triggered by bulls.
The recovery reverberated throughout the broader crypto market. Dogwifhat meme coins (WIF) and Dogecoin (DOGE) also made impressive gains.
Amid the market-wide rollercoaster, global cryptocurrency market capitalization remained fairly stable this week, falling to $2.11 trillion on May 1 and subsequently recovering to $2.35 trillion at last check.
With the latest numbers representing a stable trading week for the market, see how some of the top cryptocurrencies have traded in recent days.
BTC, DOGE and WIF prices – May 5 | Source: Santíment
Bitcoin closes above 20-day EMA
Bitcoin’s start to the week was predominantly bearish as bears sustained last week’s selling pressure. As a result, BTC, which started the week at $63,106, immediately plummeted to a low of $56,500 on May 1, falling below the $57,000 mark for the first time since February 28.
The bearish sentiments surrounding the market were evident in the performance of spot Bitcoin ETFs this week, which saw sustained outflows. Starting April 29, BlackRock’s iShares Bitcoin Trust (IBIT) mountain range there were no inflows for the fourth consecutive day as investors remained cautious.
However, on May 1, when BTC dropped to $56,500, IBIT recorded its first outflow since launch, seeing a capital outflow of $36.9 million that day, as the ETF market watching Outflows of US$563 million, the largest ever recorded.
Interestingly, after this bearish period, Bitcoin immediately staged a recovery momentum, witnessing three consecutive days of gains from May 2nd to May 4th. BTC is up 9.47% in this period, essentially recovering most of the most recent losses.
This recovery coincided with the US labor market report reinforcing the upward trend as the data triggered optimistic expectations. As Bitcoin reclaimed the $64,000 mark on May 4, the leading cryptocurrency closed above the 20-day EMA for the first time in three weeks. BitMEX Founder Arthur Hayes designed an imminent but gradual recovery in prices.
Currently trading for $63,686 at last check, Bitcoin has held above the 20-day EMA ($63,351) as it currently flirts with the 50-day EMA ($63,892). A breach of the 50-day EMA could exert enough momentum for bulls to advance toward key Bollinger Band resistance at $67,506.
WIF among top gainers with 21% increase
Dogwifhat emerged as one of this week’s biggest gainers after a turbulent start to the week. WIF followed the direction of the rest of the market, but ended up outperforming Bitcoin and every asset in the top 100 cryptocurrencies as the market rally ensued.
The meme coin started this week with a bearish momentum that began after its collapse from the high of $3.56 on April 24. When BTC fell below $57,000 on May 1, Dogwifhat similarly hit a low below the $2.27 price territory. However, it ended up closing the day with a gain of 4.34%, surpassing Bitcoin.
Dogwifhat sustained its rally, increasing over 31% from May 1 to May 4 amid a 4-day winning streak. This uptrend allowed it to reclaim the $3 mark for the first time since April 26, eventually breaking above resistance at the top of the Bollinger Band ($3.3179) on May 4.
However, this resistance level serves as a hurdle to recovery as the broader market loses momentum. With the upper band now at $3.4009 amid a widening Bollinger Bands, WIF aims to secure a close above this level to maintain its near-term bullish momentum. The meme coin is up 21.82% this week.
DOGE ends nine-day losing streak
While the rest of the market witnessed intermittent declines and occasional gains during the last market downtrend, Dogecoin saw consistent losses that spread this week. DOGE had been witnessing losses for a week now, setting a nine-game losing streak from April 23 to May 2.
During this period, Dogecoin lost 20.86% of its value, culminating in a drop to $0.1201, its lowest price since March 1st.
However, DOGE took advantage of the market rally to end this losing streak, eventually recovering all of its lost value amid a 37% surge from a low of $0.12407 on May 2 to a peak of $0.1700 on May 4th.
This surge allowed the meme coin to breach the 50-day EMA ($0.1554) on May 4. As the market rally lost momentum, DOGE retested the 50-day EMA, looking to use it as a springboard for more substantial gains as the rally rises. Currently trading for $0.1613, Dogecoin is up 10% this week.