On February 3rd, Monday, the crypto market witnessed heightened volatility as Bitcoin price plunged to a low of $92,100, before reverting to $101,000. The sharp downfall triggered a massive liquidation of $1.98 Billion among the $590k trade, according to CoinGlass. With the mounting selling pressure, the dogwifnat price breaks below an 11-month accumulation, signaling the risk for further correction ahead.
Key Highlights:
- The dogwifhat price breakdown from $1 support would accelerate market selling pressure.
- The dynamic resistance 20-and-50-day exponential moving average could drive the prolonger correction in dogwifhat price.
- The $1 level stands as key resistance against buyers in their attempt to drive a bullish recovery.
dogwifhat Price Hints at Extended Correction below $1
In a 5-day downfall, the dogwifhat price plunged from $1.26 to $0.85, registering a loss of 30%. This downfall gave a decisive breakdown below a long-coming support of $1.
Since mid-April 2024, the WIF has been resonating between $4.8 to $1 horizontal levels. The coin price bounced twice from each level, indicating the reliability of these patterns to lead to future prices.
On February 1st, the sellers could break down the bottom support and strengthen their grip over this asset as they can at a crucial psychological level. With Bitcoin price experiencing renewed buying pressure at $91,200, the WIF price could rebound to the $1 level as a retest as potential resistance.
Crypto analyst Ali Martinez shares the range of this potential retest phase with a bear flag pattern. Theoretically, this chart setup shows a downsloping trendline showcasing the dominating trend and a temporary pullback to recuperate the selling pressure.
If the pattern holds, the post-breakdown fall could plunge the asset to the $0.51 floor.
Technical Indicator:
Exponential Moving Average: A bearish alignment between key daily EMAs (20. 50. 100, and 200) accentuated the negative sentiment in the market. Moreover, the 20-day EMA slope acts as key dynamic resistance for short-term trends.)
Relative Strength Index: The daily RSI slope plunged to the oversold region (<30), indicating the dogwifhat price is heavy discount, which could attract potential buyers.
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