Solana
Bitcoin (BTC) About to Lose $60,000, Is Shiba Inu (SHIB) Ready for It? Solana (SOL) forms a reversal pattern
Arman Shirinian
The market was coming back, but the current situation does not look good
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Bitcoin is currently on the verge of falling below $60,000, an important psychological and technical level for the cryptocurrency. As observed on the chart, a descending trendline is clearly exerting downward pressure, guiding Bitcoin towards the formation of lower lows. This trend suggests that the downward momentum could continue in the short term.
Current market dynamics show that the Bitcoin price is being compressed by this descending trendline. Each attempted push higher meets resistance, leading to lower highs – a classic indicator of a continuing downtrend. Notably, trading volume has decreased, which generally indicates a weakening of the current trend and potentially sets the stage for a trend reversal. However, current signals suggest that the market is not yet ready to return to bullish.
Adding to the complexity of the moves is the potential formation of a higher low, which could be the first sign of an impending change in trend. This is a critical observation as it could mean that while the overall trend is bearish, there is some buying interest at lower levels that prevents further declines, thus providing a temporary floor to the Bitcoin price .
The immediate future of Bitcoin price largely depends on its interaction with the trendline and major moving averages. Currently, the 50-day exponential moving average (EMA) sits around $65,000, acting as potential upper resistance in the event of a bullish reversal.
Shiba Inu reaches the threshold
Shiba Inu is currently going through a critical phase as it oscillates around a strong support level at around 0.00002260.
The current chart formation features a descending triangle pattern, a typical bearish signal in technical analysis, suggesting that SHIB may be under significant selling pressure. This pattern is forming just as SHIB is testing its support, making the 0.00002260 level crucial in determining its near-term trajectory. A break below this level could lead to a test of the next major support at the 0.00002100 level, closely aligning with the 100-day EMA. It often acts as dynamic support in downtrends, providing a potential rebound zone for the price.
Conversely, immediate resistance is around 0.00002400. Exceeding this level could invalidate the downtrend and possibly trigger a short-term bullish reversal. However, converging EMAs above this price level could complicate any upward movement, potentially limiting gains and adding to volatility.
Given this dynamic, the situation with Shiba Inu remains very uncertain. The descending triangle, combined with the convergence of moving averages and key support and resistance levels, suggests that SHIB may experience increased volatility in the near future. This unpredictability currently makes it a risky asset for traders and investors.
Is Solana aiming for a reversal?
Solana is currently showing signs of a potential reversal trend. As we approach the 100-day EMA, we could see a reversal. However, it is important to note that this EMA has not been previously tested, which brings some uncertainty regarding its reliability as a support.
The current price movement has brought SOL closer to what could be considered a critical moment. The closest strong support level is established around $128, but this level has already been breached once, adding to the unpredictability of its strength to contain future declines. Such breaks can undermine confidence in the support level, suggesting that it may not be as robust as hoped.
Despite these concerns, positive signs are emerging in market dynamics. Decreasing volume indicates that selling pressure is decreasing, which could mean sellers are burning out. This scenario generally paves the way for buyers to take control and potentially increase prices.
However, the volume profile does not support the formation of an inverted head-and-shoulders pattern, a common bullish reversal indicator, casting some doubt on the immediacy of a bullish reversal.
In the medium term, if buyers can take advantage of the reduction in selling pressure, Solana has a chance of making significant gains.
About the Author
Arman Shirinian
Arman Shirinyan is a trader, crypto enthusiast and SMM expert with over four years of experience.
Arman strongly believes that cryptocurrencies and blockchain will be of constant utility in the future. Currently, it focuses on news, articles with in-depth analysis of crypto projects and technical analysis of cryptocurrency trading pairs.