PakGazette – The New Year’s rally has stalled, raising concerns about whether the bullish momentum is weakening. According to the chart provided, Bitcoin is currently trading at $104,899, down 1.21% after retracing slightly after reaching $106,214. The general trend remains bullish, but fatigue is beginning to show. The important finding from the chart is how close Bitcoin remains to its ascending trend line.
With Bitcoin still trading above important support levels, the rally that began in late October remains strong. Notably, the 50-day EMA has provided reliable dynamic support and if selling pressure picks up, the $98,400 and $97,500 levels could act as safety nets. You should also pay close attention to the volume. The bulls may be losing strength if the latest trading sessions reveal a drop in buying volume.
A break above $106,000 would likely have sparked a wave of new buyers, but the lack of follow-through suggests a brief dip rather than a complete trend reversal. At the moment, Bitcoin’s short-term direction largely depends on its ability to hold support above the trend line. The next significant support lies near $90,000. If this structure breaks, the price may be exposed to further declines.
For the foreseeable future, Bitcoin will continue to maintain its bullish stance. Corrections like this are typical during prolonged rallies and the uptrend is still intact. To confirm the next bullish leg, Bitcoin must close decisively above its previous high for the rally to continue. If this is not done, the market may cool down and enter a more extensive consolidation phase.
the weakness
Ethereum is showing signs of weakness following its inability to maintain momentum at its most recent local peak, which was near $4,100. The price is currently down 0.69% to $3,867 after a small pullback. This pullback raises concerns about the formation of a possible downtrend on the Ethereum chart.
The drop from the recent high is the first warning sign. Ethereum is now struggling to stay above its 20-day EMA, a crucial short-term support level that is currently centered at $3,707 after weeks of strong upward movement. The 50 EMA, which is located near $3,355, is the next important support if ETH fails to hold this level.
A drop below this range could signal a change in market mood and bring ETH closer to the psychological mark of $3,000. There is also the issue of volume data. Ethereum saw a surge in November, but recent sessions indicate that buying volume has decreased.
The bulls may be losing steam, as indicated by declining buying pressure, leaving ETH open to additional selling pressure. Technically speaking, a bearish divergence is starting to form on the Ethereum price chart. The Relative Strength Index, or RSI, is showing signs of stagnation near 63, a level that frequently indicates a loss of bullish momentum despite prices reaching a local high.
A deeper downtrend may be confirmed if the RSI continues to fall. Ethereum’s overall long-term trend remains positive as long as it remains above important support levels, even with the short-term bearish outlook. The $3,707 and $3,355 support zones are crucial for investors to monitor. The bullish momentum could be revived and the foundations laid for a possible recovery through a rebound from these levels.
the decline
Dogecoin price continues to decline as it tries to stay above important support levels. The meme coin is currently trading at $0.386, down around 2.04% over the past day, and the technical outlook remains worrying. The ascending channel that DOGE used as key support during its most recent rally has clearly been broken in the company’s recent price action.
The $0.45 region has now become strong resistance due to the inability to maintain momentum. Dogecoin may soon approach the 50-day EMA, which currently sits at $0.35 as a result of this breakout. It is concerning that the asset is testing this level so soon after its rally, even though it offers strong technical support.
card
The decreasing volume of this pullback further emphasizes the decreasing buying pressure. Because there is not much demand, DOGE bulls are reluctant to intervene, leaving the asset open for further declines. The $0.28 mark is the next crucial support if the 50 EMA fails to hold.
A fall below this could pave the way for a more severe correction in the direction of $0.21, a level not seen since the last significant break in November. Although not oversold yet, DOGE’s current position near 56 on the RSI (relative strength index) front indicates that the bearish momentum is intensifying. The market may confirm a bearish dominance if the RSI continues to fall.
