Bitcoin's Price Falls As Investors Switch To Smaller Cryptos

Bitcoin, Ethereum, Dogecoin annual chart review

Bitcoin chart analysis

At the beginning of the year, the price of Bitcoin was $ 29,000. After that, it was constantly growing and reached $ 6,587 in early April. The reason for the price increase is that Elon Musk included Bitcoin in his assets by investing over one billion. In May, the price dropped drastically to $ 28,000, losing more than 50.0% of its value, and the reason is that China introduced a ban on cryptocurrency mining and cryptocurrency trading. Since June, we have had a bullish momentum that raised bitcoin to a new historical high of $ 69725 in October. Soon after, the price plummeted to $ 40,000, losing about 35% of its value. December is currently a month of consolidation between $ 45,000-50,000. Potential support is the lower annual trend line that can redirect the price towards a new historical high. Breaking the price below the trend line would lower the price to previous lows this year and perhaps form new ones.

Ethereum chart analysis

At the beginning of the year, the price of Ethereum was $ 980; in the first half of the year until May, the price formed a new historical high at $ 4400. China’s anti-mining regulations introduced in May led to a 62% drop in prices to $ 1,700. Since July, the bullish scenario has been going on, and Ethereum formed a new historic high at $ 4868 in November. December is currently bearish for the price of Ethereum, and the price has dropped to $ 3400 at one point, and if the bearish pressure increases, it can very quickly see Ethereum at $ 3000. Additional support at that level is in the MA50 moving average, which from May 2020 provides support to the price in defense of the bullish trend.

Dogecoin chart analysis

Dogecoin’s favorite, Elon Musk, experienced a real expansion during 2021. He started the year at 0.0095, and already in May, he made his historical high at 0.74000. The May news about the Chinese action to suppress cryptocurrency mining led to the collapse of the crypto market, which certainly affected Dogecoin. The price soon dropped to 0.16000, losing almost 80% of its value in a month and a half. After that, the price tried to recover, but the attempts failed, and the maximum jump was up to 0.35000. Since August, we can say that the price is in a new bearish trend. In December, we had a new lower low to 0.13130, and the additional pressure is to lower the price below the MA20 and MA50 moving averages. In general, the picture for Dogekon is not bearish, and we can expect a further drop in the price to 0.10000 to confirm the pre-euphoric situation from the beginning of the year.

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