Bitcoin price analysis
Bitcoin has lost over $400 in less than 30 minutes, in turn, triggering a market bull trap jittery. The price rejected several support areas above $7,000 and is currently seeking support above $6.900. Bitcoin retraced higher yesterday and broke above the multi-month bearish trendline that has been limiting gains since the highs on March 5 and May 5 (daily chart).
However, the current situation is disappointing; besides the largest cryptocurrency by market capitalization has extended declines below the short-term bullish trendline on the 15-minutes chart. It is possible that the short-term support that has been established at $6,950 will continue to support the ongoing recoil towards $7,000. A break above $7,000 will allow the buyers to curve another path towards $7,400 following the correction.
On the downside, the previous support at $6,800 will hold if declines progress below $6,900. Looking at the chart, the price is likely to continue moving upwards while significant hurdles will be encountered at $7,050 and $7,100 respectively. The RSI is holding at 27 (oversold region) but pointing upwards while the stochastic is ranging at 30. The technical outlook is still positive and a sustained breakthrough heading to $7,380 medium-term resistance is likely.
Dogecoin (DOGE) price analysis
Dogecoin has not been affected adversely by the bearish wave that led to Bitcoin plunging below $7,000. However, Doge is nursing declines following a drop of over 33% on September 2 but has corrected lower by more than 4%. There is a contracting triangle in play on the 1-hour chart. Besides, a bullish trend is brewing up above the immediate support at $0.0045.
Dogecoin is trading below the hourly 100 simple moving average while technicals show that a retracement to $0.0055 is possible. At the same time, a break above the triangle resistance will allow a trajectory heading to $0.0066 (supply zone). In the meantime, the price is flirting with $0.005.
NEM (XEM) price analysis
NEM extended the gains above the resistance we discussed yesterday at $0.12. The price came close to $0.130 but declines capped the gains at the month’s high ($0.129). Dogecoin broke out of the long-term descending triangle at $0.1066 (September 1) but the sharp slump in today’s trading has broken several technical levels. The initial support at $0.12 gave in to the bear pressure while the 50 simple moving average support at $0.11 (current immediate resistance) did little to stop the fall.
NEM/USD is seeking balance above the primary support at $0.10. However, the technical signals on the hourly chart remained highly bearish. The stochastic, for instance, is heading into the oversold while the RSI is ranging at 40. It is vital that the crucial support at $0.10 is not broken, otherwise August low at $0.0933 is within reach.
NEM is the 17th largest crypto with a market capitalization of $978. Its trading volume has been surging in the past few days from $11 million on September 1 to $22 million at the time of press. The majority of NEM trading takes place on Zaif exchange which recently controlled 19.76% of the total volume in NEM/JPY trading pair.