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This Shiba Inu (SHIB) Pattern Just Got Invalidated, Bitcoin (BTC) Secures Critical Price Level, Ethereum's (ETH) Massive Struggle at $2,400

Published 10/13/2024, 08:01 PM
Updated 10/14/2024, 02:00 AM
This Shiba Inu (SHIB) Pattern Just Got Invalidated, Bitcoin (BTC) Secures Critical Price Level, Ethereum\'s (ETH) Massive Struggle at $2,400
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U.Today - When the recovery momentum around the $0.000017 level was lost, Shiba Inu's current price pattern was deemed invalid. It appears that the symmetric triangle pattern that once suggested a breakout is weaker now. The bullish momentum required to move the asset past this crucial resistance level has not been capitalized on by it.

Though SHIB has had difficulty holding its position, the tightening range of the symmetrical triangle suggested a potential spike in volatility. The token's incapacity to sustain the rally has been attributed in part to the absence of strong buying pressure.

Still, there is a bright spot in the technical picture. The asset may have another opportunity to strengthen even though the breakout momentum has not materialized because the price is still above the upper line of the symmetrical triangle. The asset might try a more significant upward move if SHIB can muster enough volume and overcome the $0.000017 resistance level. Should this move not occur, SHIB might go through more consolidation or perhaps retrace back to lower support levels at $0.000015.

The likelihood of a short-term recovery may be further reduced if bulls are unable to drive the price higher and the token is subject to increased selling pressure. Now traders should be watching to see if SHIB can regain momentum with key resistance levels around $0.000017 serving as important indicators to keep an eye on. In the absence of consistent purchasing support, the road to recovery could become more difficult.

Bitcoin secures $60,000

Investors and traders can now relax a little as Bitcoin has once again maintained the critical $60,000 level. Reversing the recent downward trend, the price has risen above $62,000, suggesting a possible recovery.

This level has acted as a significant psychological barrier, and the market's recovery implies that bullish momentum may be returning. While the price of Bitcoin is strengthening, it is important to take note of the declining trading volume. Lower volume typically denotes less confidence in the direction of the price movement.

This could be an indication that absent an increase in volume the current upward trend may not have enough momentum to last. Nevertheless, this low volume may be advantageous given the mood of the market as a whole, particularly in light of the asset's recent decline.

The fact that Bitcoin was able to rebound from this level indicates that there may be buying interest that could keep the asset safe from further losses.

However, for BTC to validate this bullish reversal there needs to be a steady increase in buying pressure. If the sentiment of the market as a whole shifts negative, there is always a chance of another decline. However, at $60,000, Bitcoin is currently demonstrating resilience, which is good news for bulls who are anticipating a longer-term recovery.

Ethereum's serious obstacle

The 50 EMA-designated $2,400 price level is presently posing a serious obstacle for Ethereum (ETH). Since early October, Ethereum has failed to break above this level several times, indicating that it is a strong resistance point. Even though ETH has demonstrated short-term bullish momentum, its persistent inability to overcome this significant barrier suggests that bulls are not very persuasive or strong.

For Ethereum, the $2,400 mark seems to be both a psychological and a technical barrier, serving as a turning point where sellers have repeatedly intervened to stop further gains. Supporting this is the 50 EMA, which technical analysts frequently view as a dynamic resistance line.

The market is still cautious as evidenced by the fact that ETH has been rejected three times at this point, and a breakout appears unlikely in the absence of strong buyer momentum. A more robust bullish reversal may be possible if Ethereum is able to break above $2,400. Under such circumstances, $2,600 and $2,800 would be the next important resistance levels to keep an eye on. A strong breakout could cause investors' opinions to change and spark a rally that could push ETH back toward $3,000.

On the other hand, if Ethereum is unable to muster sufficient buying momentum to overcome this barrier, it may struggle moving forward. If $2,400 is not broken, there may be a retracement and ETH may go back to the lower support levels, which are roughly $2,300 or even $2,200. Ethereum may experience additional losses if the price drops below these levels, which could cause the market to turn bearish.

This article was originally published on U.Today

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