Bitcoin correction ensures a red Sunday for the entire crypto market

After a friendly week of trading, there was a stronger sell-off of the crypto key currency Bitcoin (BTC) over the weekend. This price movement also led to a temporary price correction on the market as a whole.

By the weekend, the crypto market showed its bullish side. Bitcoin’s all-time high (BTC) spurred the overall market to a new total market capitalization of more than $ 2.2 trillion. The week was marked by increased investments in “latecomers”. The bullish investors increasingly invested in established altcoin projects from the first high phase in 2017. The price explosion in Dogecoin (DOGE), which was by far the strongest this week, is remarkable. On the night of Sunday, however, a significant correction in the price of Bitcoin caused panic movements in the overall market. The liquidations on long positions, also known as margin calls, rose to a total of USD 12 billion during the course of the correction. This led to short-term price drops of 40 or more percentage points for many Altcoins before the overall market was able to recover for the most part over the course of Sunday afternoon.

Best price development among the top 10 altcoins:

Dogecoin (DOGE)

Price analysis based on the value pair DOGE / USD on Binance

After Dogecoin reached a new all-time high at USD 0.45 last Friday, there was consequent increased profit-taking, which caused the DOGE price to drop significantly. As suspected in the price analysis on Friday, April 16, Dogecoin corrected into the green support zone in the area of ​​$ 0.25. Here bullish investors came back into the market and bought DOGE back to currently 0.40 USD.

Bullish variant (Dogecoin)

If Dogecoin can sustainably overcome its all-time high at USD 0.45, investors will initially focus on the 461 Fibonacci extension at USD 0.49. Should the DOGE price also break through this upward resistance, Dogecoin should even jump over the USD 0.50 mark and rise into the red resistance area. For now, the 561 Fibonacci extension of the current price movement at USD 0.58 is conceivable as a possible price target. If the hype continues, a march up to USD 0.68 cannot be ruled out.

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Here you can find the 661 Fibonacci extension, which from a technical chart point of view is to be seen as the maximum price target. The DOGE community is hoping for a rise towards the psychological USD 1.00 mark, but whether and when this target price will be achieved remains to be seen. Investors should at least realize partial profits when reaching USD 0.68 and adjust their stop loss in order not to be surprised by another sharp correction. From a chart point of view, the sustainability of such a strong price increase within a few trading days should be treated with caution.

Bearish variant (Dogecoin)

After the sharp increase of almost 400 percentage points, there was a significant course correction of 50 percent, as mentioned in the last analysis. Although this correction movement has now almost been made up for, a repetition of such a downward movement cannot be ruled out. If the bears manage to strike back and push the DOGE rate again below the first relevant support level at USD 0.36, Dogecoin should come back again towards USD 0.32. If this support level is also abandoned, a relapse to around USD 0.28 is likely. A decision on the direction should be planned at the latest in the area of ​​the green support zone between USD 0.25 and USD 0.23. If Dogecoin falls permanently below this support range, an expansion of the correction up to USD 0.20 must be planned. Should this support in the form of the higher-level 361 Fibonacci extension be dynamically undershot, the Friday low at USD 0.18 will come back into the focus of investors.

Below this mark, the DOGE rate should drop immediately to USD 0.16 (261 Fibonacci extension). The EMA20 (red) is currently in the daily chart here. A renewed entry by bullish investors is to be expected. A directional decision should be made in the range between 0.14 / 0.13 USD at the latest. The 200 Fibonacci extension of the superordinate upward movement as well as the supertrend in the daily chart can be found on this cross-support. If there is a lasting break in this support zone, the DOGE course will target the blue support zone. The EMA50 (orange) and the 61 Fibonacci retracement of the current price movement run here. In order to check the consistency of the uptrend, a price correction to the breakout level at USD 0.09 would be desirable from a bullish point of view. At this price level it will be decided whether the current increase was just a “pump and dump” movement or whether Dogecoin can focus on higher price targets in the medium term.

Indicators (Dogecoin):

The RSI indicator still has a long signal, but is trading in the overbought area with a value of 85. The MACD indicator also shows a buy signal on a daily basis. However, both indicators are clearly overbought. The weekly chart also shows an overbought status for both indicators. In particular, the RSI indicator warns you to be careful with a value of 94.

Worst price development among the top 10 altcoins:

Polkadot (DOT)

Course analysis Polkadot (DOT) week 15

Price analysis based on the value pair DOT / USD on Binance

The course of Polkadot showed a very volatile price movement in the past trading week. At the beginning of the weekend, the DOT price rose to a new all-time high at USD 48.30, but subsequently corrected by more than 32 percentage points to around USD 32.15. Polkadot has rallied in the last 24 hours of trading, but is trading at USD 36.09, well below its weekly high.

Bullish variant (polkadot)

Yesterday’s price slump left lasting marks. Polkadot is currently trading well below its trading range in recent weeks. Although the bulls were able to avert a slide under the orange support area, they have so far failed to regain the important price level of USD 38.26. Only when the DOT price rises above this resistance at the end of the day does the EMA20 (red) come back into focus at USD 39.70. If the bulls manage to lift the Polkadot price back above this chart level, an increase to the old high at USD 42.30 is to be expected. If the DOT rate can then dynamically overcome USD 42.30, another attempt to rise towards USD 46.77 is conceivable. If the DOT price can stabilize above this resistance, the all-time high in the area of ​​the 138 Fibonacci extension will come into focus again.

Only when this chart mark is sustainably broken is a break through to the 161 Fibonacci extension at USD 51.97 conceivable. The first important price target for the coming trading weeks can be found here. If the bulls subsequently manage to overcome this projected price target at the daily closing price, a subsequent increase of up to USD 57.99 must be planned. The 200 Fibonacci extension of the current price movement runs here. If the crypto market can gain further momentum in the coming trading weeks, a price increase up to the 261 Fibonacci extension at USD 67.71 is also conceivable in the medium term. In perspective, the DOT price could rise in the second half of the year to the 361 Fibonacci extension at USD 83.45. A subsequent increase to the maximum price target of USD 99.19 cannot be ruled out if the mood on the crypto market continues to be positive.

Bearish variant (polkadot)

If the correction at Polkadot continues and the DOT rate falls dynamically below USD 35.33, the 50s Fibonacci retracement at USD 34.37 first comes into focus. If this support is undershot in the long term, a directional decision is made in the orange support area. The 38 Fibonacci retracement and the supertrend in the daily chart are at USD 32.52. The bulls will try again to stabilize the DOT rate in this area. However, should Polkadot break the week’s low at $ 32.10 per day’s closing price, the corrective move will gain momentum and target the 23rd Fibonacci retracement at $ 30.21.

If the market as a whole resumes the correction movement from the weekend, and the blue support zone is clearly undercut, a correction expansion into the purple support area should be planned. If USD 28.82 does not hold up either, a setback to the low of USD 26.50 is likely. Should this area also be abandoned at the daily closing price, the low of USD 23.17 will move into the focus of investors. A retest of the EMA200 (blue) is also conceivable in the medium term. This sliding support is currently at USD 20.28 and represents the maximum bearish price target for Polkadot.

Indicators (polkadot):

The RSI as well as the MACD indicator have generated fresh sell signals. Unless the RSI can move back into the neutral zone between 45 and 55, it will be difficult for Polkadot to move back towards its all-time high.

Top 10 stability

The ranking of the top 10 Altcoins is also being shaken up this week by Dogecoin (DOGE). DOGE tops the list of weekly winners by a large margin. Bitcoin Cash (BCH) is also very bullish this week after several weak trading weeks and is gaining 35 percent in value. Litecoin (LTC), Ethereum (ETH) and Uniswap (UNI) also save moderate price gains of around 3 percent in the new trading week. Half of the top ten altcoins cannot escape the sale of Bitcoin (BTC) at an 8 percent discount.

After a bullish start to the week, Polkadot (DOT) and Ripple (XRP) corrected significantly at the end of the week and lost around 10 percent in value. Looking at the ranking list, there are several changes, particularly due to DOGE’s strong outperformance. The Dogecoin jumps from 14th to 5th place and displaces Cardano (ADA), DOT and Litecoin (LTC) one place in the ranking list each. Bitcoin Cash (BCH) is also back in the top 10. BCH moves up to 9th place and displaces Uniswap (UNI) and Chainlink (LINK). This means that Chainlink has dropped out of the list of the ten largest cryptocurrencies after a long time. The unabated high volatility on the market as a whole is thus continuing to upset the ranking.

Winner and Loser of the Week

Despite a bloody trading day at the end of the week, the overall market got away with a black eye because of an overall bullish trading week. More than 50 percent of the top 100 Altcoins show a price increase at the end of the week. The list of the 100 largest Altcoins is headed by the “Meme-Coin” Dogecoin (DOGE) with a price increase of 360 percent. The crypto veterans NEO (NEO) and Amp (AMP) also convince with an increase in value of around 100 percentage points. It is also noteworthy that with Ethereum Classic (ETC) (+82 percent), Siacoin (SC) (+75 percent) and Nano (NANO) (+74 percent) a striking number of crypto projects from 2017 were among the most bullish top 100 altcoins this week counted.

However, the bang at the end of the week did not leave many Altcoins unscathed. The list of weekly losers is headed by the KuCoin Token (KCS), Elrond (EGLD) and OKB (OKB), each with a price drop of around 22 percent. A good 10 top 100 Altcoins lose more than 10 percent of their value in a weekly comparison. As warned in the previous week’s analysis, increased profit-taking after three months of bull market on the market as a whole should not come as a surprise.

Disclaimer: The price estimates presented on this page do not constitute buy or sell recommendations. They are only an assessment of the analyst.

The chart images were created using TradingView created.

USD / EUR exchange rate at the time of going to press: 0.83 euros.