Are Bitcoin and Dogecoin Entering a Bear Market?
It looks like we’re starting to creep into bear market territory now. Some key support levels have been broken, particularly in Bitcoin. We’ll take a look at that in the charts. The news also hasn’t really been great. The news from China with the know stopping mining operations. So that is reducing cash rates, really slowing things down.
There’s some talk about the state of Texas, new mining operations coming up, which will certainly help, but that’s not immediate. Also, there is a lot of hesitancy in the investments of Bitcoin as a real store of value and for larger investment firms. A lot of hesitancy, part of it due to Elon Musk and things that he said about Bitcoin and his Bitcoin goes. Most of the other alt coins follow.
So let’s take a look the current trading of Dogecoin
Here’s the Dogecoin chart. We see the morning dip this morning compared to on Sunday morning. This was the dip over here on Sunday morning. So Dogecoin had gone from 28 cents and it down to about 25 and a half cents right there. And we thought that was a big dip and there was a good recovery during the day on Sunday, came back up over 28 cents, almost at 29 cents.
So that was looking pretty good. However, the Sunday evening and then overnight there was just sort of this gradual downward trend of Dogecoin, followed by this big dip. And the big dip came all the way down to 21.2 cents. And people were buying the dip right there. However, I mean, the relative strength index went all the way up to sixty five sixty six here Sunday afternoon.
But then what we see this morning is a drop back down and this is really low. Again, great buying opportunity, we would normally think in terms of trading. However, we don’t know whether twenty one two is going to be the lowest and whether this is going to continue to sort of trade sideways and then have another dip maybe this afternoon or tomorrow morning that could even be lower and that could certainly happen. I don’t see any big catalyst right now, particularly with Dogecoin.
Not a lot of great news out there in the crypto world
We might see a little positive trading like we did yesterday and see some upward trend, maybe get up to 25 cents. We’ll see going forward on Dogecoin. Dogecoin also in the last 12 hours is down 17 percent, so that’s that’s a big drop, 17 percent Bitcoin through that same time period is down eight percent. So only half as much of a drop on Bitcoin. So what that means for Bitcoin is looking here at Bitcoin. Bitcoins dropped this morning, came down to thirty one thousand seven hundred.
The last time we saw this change of of the crossover here was back here in March of 2020. And what happened here was Bitcoin had sustained a period of higher trading here, over ten thousand, which had been a slow, steady trading upwards in the early part of 2020. But then there was the big drop, the uncertainty of the coronavirus, the pandemic, and there was that big drop.
Is it going to continue to have these morning dips and then not fully do a full recovery, but only do a half recovery and then do sideways trading? That could very well happen. We need some good news, that’s for sure. And right now, not a lot of great news out there in the crypto world. So it could be a longer summer for that. And then we’ll wait for the fall and we’ll see what happens.