Technical analysis: Bitcoin (BTC) and Dogecoin (DOGE)
Markets Digesting Fed's Decision. 15/06/23
Bitcoin
After the announcement of the interest rate decision, the leading cryptocurrency plunged to $25,000, hitting a new local low at the $24,800 mark. If buyers fail to demonstrate resilience and maintain a foothold above $25,000, the price might fall further toward the next support zone at $24,000.
The current resistance zone lies between $25,400 and $25,700. Sellers' orders are primarily located within the ranges of $26,300 to $26,500 and $27,000 to $27,400. Consequently, we can't rule out the possibility of liquidity being pulled at least from the first range.
BTC chart on the H1 timeframe
Dogecoin
The DOGE price trend has a significant correlation with that of Bitcoin. Following the recent drop, Dogecoin tested the support zone at $0.054 to $0.058. Should the downward trend continue, the next significant level for buyers is the psychological threshold of $0.05.
The current resistance zone is within the $0.064-$0.068 range. The subsequent zone populated with sell orders is at the $0.075 to $0.078 range.
DOGE chart on the H4 timeframe
It's noteworthy that, for the first time in a significant period, the Fed has kept the interest rate steady, while the inflation rate has dropped by 0.9%. All of these were perceived as positive signals for the market, but Bitcoin and other cryptocurrencies reacted with a decline. Hence, potential market manipulation should be taken into account before initiating any trades.
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Disclaimer
Please note that the analysis provided above should not be considered a trading recommendation. These are solely the opinions of the Gagarin News editorial board regarding the market situation. Before opening any deals, we strongly advise conducting your own research and analysis.
Abbreviations
TF (Timeframe) — a chronological period equal to the time it takes to form one Japanese candle on the chart.
Horizontal channel (flat, sideways, range) — the movement of price between support and resistance levels, without going beyond the given range.
К — simplified designation of one thousand dollars of the asset price (for example, 23.4K - $23,400).
Gray range on the chart — a support zone.
Red range on the chart — a resistance zone.
Correlation — the tendency of prices of different cryptocurrencies to move in sync, often influenced by the dominance of one of the assets.
Initial materials
This analysis was informed by the following educational materials and articles from Gagarin News:
