Is Bitcoin Secretly in a Downtrend? Insights on Dogecoin and Ethereum's Struggles

The Current State of Bitcoin

With its recent performance demonstrating strength above $100,000, Bitcoin has been rising steadily. However, a more intriguing perspective emerges from the chart: Bitcoin might still be in a covert downward trend. Despite not forming bullish sentiment, it has achieved a higher high since its peak in late 2024. The daily chart's descending trendline is the most telling indicator.

Bitcoin has not made a clear move above this barrier, indicating that there is insufficient evidence to support a complete uptrend. To maintain its upward trend, Bitcoin needs to surpass its previous peak of approximately $110,000. Its price action remains in a mixed zone until then, and any rejection below this level could strengthen the hidden downtrend. The volume profile of Bitcoin adds to the uncertainty, as it has not yet reached the levels observed during its previous peaks, despite a recent increase.

This suggests a lack of intense buying power to move Bitcoin past its current resistance. However, Bitcoin's ability to hold steady above the 50 EMA and maintain its value around $100,000 gives bulls hope. These levels serve as solid support, and a breakout is still possible as long as Bitcoin stays above them.

Bitcoin is at a turning point in the near future. The hidden downtrend would be disproved by a breakout above $110,000, signaling a return to bullish momentum. Conversely, it might confirm a wider correction if it fails to break above the trendline and drops below $90,000.

Dogecoin's Potential Breakthrough

At around $0.40, Dogecoin successfully broke through a significant resistance level, indicating fresh market bullishness. Additionally, it is making an effort to cross the 50 EMA resistance, a crucial technical barrier that has kept the price lower for weeks. There have been two recent attempts to break above the 50 EMA with this move. Despite its encouraging upward momentum, DOGE has not yet established itself above this level, so the next few days will be crucial for its price trajectory.

The $0.45-$0.50 range may be the target for future upward movement if Dogecoin can gain traction above $0.40 and sustain its momentum past the 50 EMA. This positive outlook is also supported by the volume data, which shows noticeable buying pressure. However, the market remains cautious, as a retracement back to the support zone around $0.35 could occur if it is unable to hold above $0.40.

Ethereum Still Suppressed

With its price movement indicating little hope for the near future, Ethereum continues to struggle in the market. The cryptocurrency has not produced any notable upward momentum and has been trapped in a consolidation phase. Currently priced at about $3,740, Ethereum has failed to recover its earlier highs, recently bouncing back from the 200 EMA near $3,120, leading to a brief rally of support.

However, breaking through the resistance levels at the 50 EMA—around $3,557 and $3,800—remains a challenge. The price has repeatedly failed to close above these crucial levels, indicating a lack of bullish momentum. The current volume reflects little buying interest, which contributes to bearish sentiment. The likelihood of a deeper retracement rises if Ethereum is unable to break through the 50 EMA and gain traction above $3,800.

The 200 EMA, close to $3,120, serves as a critical support line. Should Ethereum break below this threshold, additional drops might follow, potentially reaching $2,900 or lower. Conversely, a successful breach above $3,800 could reignite bullish sentiment and move Ethereum closer to the psychological level of $4,000 and beyond.