- Bitcoin bounces off support at $31,000 as investors look toward $40,000.
- Dogecoin slips to $0.2 amid the hunt for robust support ahead of recovery attempts.
Bitcoin tumbled from June highs above $41,000 and tested support at $31,000. This buyer congestion zone has been tested and held twice within the same month. The freefall is said to have been triggered by a crackdown on Bitcoin and crypto trading activities in China. The People’s Bank of China (PBOC) is determined to purge the nation of other crypto-related activities ahead of its planned digital yuan rollout.
At the time of writing, Bitcoin trades marginally under $33,000 after securing support at $31,000. The relative Strength Index (RSI) hints at the uptrend continuing to gain traction. As the RSI closes the gap to the midline, we expect buyers to return to the market, as investors take advantage of the dip to speculate on gains above$40,000.
Realize that Bitcoin is still in the woods until perhaps until bulls reclaim support at $36,000. Moreover, the MACD has a bearish impulse based on the retreat into the negative region.
BTC/USD four-hour chart
Dogecoin is among the digital assets that suffered immensely amid the ongoing selloff. In addition to losing the support at $0.3, DOGE tested the support at $0.2. At the time of writing, the token still trades around $0.2 amid the push for recovery.
The RSI has a bullish outlook after dropping into the oversold territory. If this trend strength indicator sustains the movement toward the midline, we are likely to see bulls tighten their grip.
DOGE/USD four-hour chart
Realize that recovery in the near term depends on the bull’s ability to hold support at $0.2. While trading above the 200 SMA may bolster Dogecoin toward $0.35
On the downside, closing the day under $0.2 may validate the immense seller congestion zone, especially with losses to $1 becoming apparent.