Crypto Signals Brief Nov 28: Dogecoin Resumes Bullish Momentum
Skerdian Meta • 2 min read
Last Week’s Market Wrap
Cryptocurrencies turned bearish at the start of this month after the FTX exchange bankruptcy, which shook the market and they resumed the decline again, opening on Monday last week on a negative foot, with Bitcoin making a new low for this year. But, they reversed on Tuesday as the sentiment in financial markets improved and pushed higher, as the USD declined.
So, the sentiment is bullish at the moment, with Dogecoin making the most of it. This cryptocurrency surged higher after Elon Musk took over Twitter but reversed lower after the FTX event. Although, it gained around 50% last week after bouncing off moving averages, so let’s see if it can reach the high from early this month above $0.15.
This Week’s Market Expectations
Last week started with the risk sentiment being positive in financial markets, especially after the US manufacturing PMI report. So, this week we’ll see if the sentiment will remain positive, which will be good for cryptocurrencies. The US ISM manufacturing report will be released by the middle of the week, which is expected to show a contraction at 49.8 points, and will have some impact on the sentiment.
Crypto Signals Update
Cryptocurrencies turned bullish in October as risk sentiment improved but the bullish momentum ended early this month after the FTX bankruptcy and after the bearish move earlier this month, we saw another decline early last week which sent them to the lows from early November. But made some gains and were showing buying pressure, so let’s see if they can turn the tide around.
[[Bitcoin] Finding Support at MAs
Bitcoin retested the lows on Monday last week after turning bearish earlier this month as it fell to around $15,500. The price consolidated for a couple of weeks, but the decline resumed again as the 50 SMA (yellow) caught up with the price on the H4 chart and on Monday sellers retested the previous low, which held. We saw a bounce on Tuesday and buyers were testing the 50 SMA (yellow) which stopped the climb. But yesterday the price moved above that moving average, so it is turning into support now which is a good sign.
BTC/USD – H4 chart
ETHEREUM Moving Above $1,200
The FTX bankruptcy sent Ethereum crashing lower and despite attempts to turn bullish, sellers still remain in control. There was a consolidation here for a few weeks as well, but the 200 SMA (purple) caught up on the H1 chart and pushed the price lower. On Monday ETH/USD fell below $1,100 again but yesterday we saw a reversal, so buyers are still alive.