The Dogecoin price surged near 1.5% against the BTC during the March 11th trading session, thereby establish smaller bullish corrections in an already bearishly-biased market. The market however continues to face strong upside risks that, if tested, could really pulldown price back to invalidate the currency near-term bull sentiment. Following is the elaboration of this theory.
As you can notice the DOGE/BTC 4H Chart above, sponsored by Trading View, the Dogecoin price has clearly formed new higher highs in order to test the 61.8% retracement — aligning with 54. Just after that, you could see small red candles indicating some sort of sideways correction. In the last few hours though, the Dogecoin price has clearly attempted an upsurge towards 51, the 50% retracement level. It is still in process of testing this upside resistance, as we write this analysis.
The technical indicators are also indicating a near-term bullish correction in an overall bearish market. The Dogecoin price is coming closer to its 50H MA, while the RSI is also waiting to cross above the 51 level, which we believe won’t happen. In the meantime, the MACD blue curve, while staying in a negative territory has crossed above its saffron signal line. They both represent the 12-H EMA and 26-H EMA, respectively.
The market’s volatility meanwhile has remained steady, reflecting the perfectly distanced Bollinger Bands.
The Dogecoin price still needs to cross above 51 to establish a rather stronger bullish bias, though a very strong upside risk near 53 will try to keep it between a stiff consolidation area. On the downside, the 44-support is still in play, having supported the previous two lower lows consecutively. If price somewhat falls below 44, the downside risk will move towards 38.
Exiting the trade near 49-51 area will be better at this point. Meanwhile, try setting your stop losses just below 48 to ensure a timely exit.
[Note: All price units are in Satoshi]