Dogecoin Goes Parabolic As Bitcoin (BTC/USD) Backs Down

It was a big week for the crypto space as the Coinbase (COIN) IPO took markets by storm. But this wasn’t the only noise out of crypto as both Bitcoin and Ethereum launched up to fresh all-time-highs. Surprisingly, neither was the most interesting thing going on this week in that space, as Dogecoin put in an astonishing run of more than 549% from the Monday low up to the Friday high.

You may recall Dogecoin as being one of the markets cited by Elon Musk of recent. Unlike Bitcoin, Dogecoin has an unlimited supply and was in essence, created as a meme. But in 2021 so far, the coin has attracted considerable attention, rising from a low less than one cent in late January to trade above .44 cents this morning. That entails a run of 5,955% in just a few months.

These astonishing moves, while interesting, are incredibly difficult to put any actual analysis behind given that we’re seeing a near-parabolic-like trend. The big question at that point for the trader is whether or not they think that will continue, and given the rapid pace of the move, there’s a dearth of evidence in either direction that could create a compelling analytical argument.

Dogecoin Daily Price Chart

Dodgecoin Goes Parabolic as Bitcoin (BTC/USD) Backs Down

Dogecoin price chart created using TradingView

Bitcoin Breaks Out, Pulls Back to Support at Prior Resistance

It was another big week for Bitcoin, well, at least to start off with, as BTC/USD jumped to yet another fresh all-time-high ahead of this week’s Coinbase IPO listing. The big item from that breakout was the cryptocurrency crossing the psychological 60k threshold, a price that had held resistance for about a month from mid-March into mid-April. I had expressed the potential of a bullish breakout in last week's analysis, highlighting a brewing symmetrical triangle pattern that had built as price action was holding below the 60k psychological level.

The breakout took hold ahead of the Coinbase IPO earlier this week, and Bitcoin rushed up to another fresh all-time-high at the 64,895 level, coming very close to engaging with the next psychological level of 65k. Bulls were unable to test that price, however, and a pullback showed up and held through Thursday trade.

1 2
View single page >> |

Disclaimer: DailyFX, the free news and research website from IG, is one of the world's leading sources for news and analysis on the ...

How did you like this article? Let us know so we can better customize your reading experience.


Leave a comment to automatically be entered into our contest to win a free Echo Show.