This is a daily analysis by CoinDesk analyst and Chartered Market Technician Omkar Godbole.

A softer-than-expected U.S. PPI pushed bitcoin BTC$113,975.90 past $113,600, confirming the bullish inverse head and shoulders pattern highlighted earlier this week.

The breakout signals the end of the recent pullback from record highs above $124,000 and the resumption of the broader rally. Using the measured move technique, which adds the distance between the pattern’s low and the breakout point to the breakout level, suggests bitcoin could reach nearly $120,000.

The ascending 50-, 100-, and 200-hour simple moving averages (SMAs) support the bullish momentum gathering strength. Additionally, the daily chart’s MACD histogram crossing above zero further confirms a positive shift in market sentiment.

On the upside, bulls may encounter resistance near the heavily watched 50-day SMA at $114,700, while on the downside, the recent higher low at around $110,000 serves as a key level for bears to challenge.

Despite recent volatility, XRP’s long-term bullish potential is unaffected, meaning investors can still aim for $5. After a robust rally in July that took it from the $2.40 range to almost $3.60, the asset is currently consolidating at $3.20. The fact that XRP is still above critical moving averages even though the momentum has slowed indicates that the uptrend is still intact.

Technically speaking, XRP is currently capped on upward movements in the $3.35-$3.40 range by a descending trendline resistance from its late-July highs. Bulls are prepared to push toward the $3.60 mark once more, which is the final significant obstacle before aiming for $4.00 and ultimately $5.00. A breakout above this level would be a clear indication of that.

Although it won’t happen right away, the $5 path is by no means unattainable. The recent price movement of XRP has demonstrated that the asset can produce quick gains once momentum starts to build.

Good sentiment in the cryptocurrency market, expanding acceptance in payment systems and solid fundamentals could all act as catalysts for such a move. Important support levels are located at the 50-day EMA ($2.79) and the 20-day EMA ($3.05). Long-term investors may view any pullbacks into these zones as opportunities for accumulation as long as these levels are maintained, which would keep XRP in a bullish structure.

The $5 dream is still alive even though short-term price fluctuations and trendline resistance might cause hesitancy. To make it happen, XRP needs to firmly regain the $3.60 zone, which will pave the way for a surge toward the psychological $4.00 barrier, after which $5 becomes a feasible benchmark.

Shiba Inu develops

Shiba Inu’s early indications of a head and shoulders pattern are developing on the daily chart. Having failed to break above the descending trendline resistance that has been in place since late July, SHIB is currently under downward pressure, trading close to $0.00001338 at this time.

A steep rally to the mid-July peak or head at around $0.00001550 seems to have followed the formation of the left shoulder in early July. The price is currently having difficulty keeping up with the combined resistance of the 200-day EMA (~$0.00001428) and the descending trendline despite the recent recovery attempt from the $0.00001200 zone having created the beginnings of the right shoulder.

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If this pattern materializes, the neckline falls between $0.00001200 and $0.00001220. With a more significant support near $0.00001000 and the first major support around $0.00001150, a clear daily close below this level might lead to a deeper sell-off. That being said, the bearish scenario is not assured. By pushing SHIB firmly above the 200-day EMA and the $0.00001450 resistance level, bulls still have a chance to invalidate the pattern.

The market may pick up steam and move toward $0.00001550, possibly retesting the psychological barrier at $0.00002000. While trading volume is still quite low in comparison to July’s highs, the RSI is currently close to 53, indicating neutral market momentum.

This shows that traders are probably waiting for a breakout or breakdown from this consolidation and are in a wait-and-see attitude. At the moment, Shiba Inu is at a complex crossroads.

Bitcoin’s attempt

As Bitcoin tries to recover from the $120,000 resistance, which has turned into a crucial barrier for bullish momentum, it is in an uncertain period. In recent weeks, Bitcoin has made multiple attempts to break through the $118,130 mark, but each push has been thwarted by selling pressure, maintaining the market in what could be described as deep waters.

From a technical standpoint, the $120,000 level represents both a psychological cutoff and a point at which the market has experienced significant rejections in the past. The uptrend that started in early May when Bitcoin surged from about $95,000 to its July highs may be coming to an end if it is not broken. Continuing its upward trend, the 20-day EMA ($115,964) provides some immediate support. The 50-day EMA ($113,934), which corresponds to a consolidation zone from earlier in the summer, comes next.

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A decline below these levels might drive Bitcoin closer to the 100-day EMA or $108,377 and possibly further into a corrective phase. Recent resistance retests have seen comparatively low volume, indicating that buyers are wary at these high prices. With neither extremely bullish nor bearish conditions predominating the RSI, which is currently at 57, it indicates neutral momentum.

Bitcoin is at greater risk of a protracted period of sideways movement or even a deeper retracement if it is unable to break and hold above $120,000 in the near future. This could postpone a complete recovery toward all-time highs and beyond in addition to dampening sentiment in the short term.

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The Dogecoin price is showing signs of a potential breakout as an Inverse Head and Shoulder pattern, a classic bullish reversal indicator, appears to be forming on the charts. Following weeks of sideways consolidation, this technical setup could signal the return of Dogecoin’s upward momentum and a possible steady upward surge toward the long-awaited $1 mark. 

Dogecoin Price Chart Signals Bullish Reversal

A new technical analysis by crypto market expert Klejdi Cuni suggests that Dogecoin may be gearing up for a potential bullish move as a textbook Inverse Head and Shoulder pattern appears to be taking shape on the charts. The current setup is forming on a lower timeframe, suggesting a bullish trend reversal may be in progress. 

While the $1 milestone remains elusive for the meme coin, the analyst’s projection suggests a steady yet swift climb in the meme coin’s price above $0.23. If bullish momentum continues and certain resistance levels are broken, Dogecoin could eventually push toward $1. 

For now, Cuni’s chart shows that Dogecoin’s price is now approaching the neckline of the Inverse Head and Shoulders pattern, which represents the horizontal resistance line that connects the highs between the shoulders. At the time of the analysis, DOGE was trading at $0.228, just below the neckline resistance. 

A confirmed breakout above this neckline could trigger a rally resumption. If this breakout occurs, the chart outlines two potential upward targets. The first “quick target” is placed at $0.239, aligning with the local resistance level from a previous price high. Following this, DOGE is also expected to reach a higher price target at $0.25, representing a much stronger resistance level than previous thresholds.

DOGE Faces Potential Crash After Rally Above $1

In other news, crypto analyst Trader Tardigrade has shared a bullish forecast for Dogecoin, anticipating a potential leap in price in the near term. However, this rally may be short-lived, as the analyst warns of a significant price correction following the upward move.  

Sharing a monthly Dogecoin price chart, Trader Tardigrade highlights striking similarities between the meme coin’s current setup and one that played out from 2014 to 2021. In the past cycle, Dogecoin completed a rounded bottom accumulation phase over several years, followed by a breakout above the long-term resistance, a sharp upward move, and then a pullback in the form of a Falling Wedge pattern. 

The analyst confirms that DOGE has recently completed a similar accumulation phase and has broken above its key resistance level. If the historical pattern repeats, the next phase could be a dramatic upward move to new all-time highs between $0.9 and $1.4. After this projected surge, Dogecoin might decline toward the $0.22 and $0.14 levels, potentially entering a prolonged consolidation phase within a Falling Wedge pattern reminiscent of the multi-year retracement that followed its 2018 peak.

Featured image from Getty Images, chart from Tradingview.com

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Tony Severino, a prominent crypto analyst, has shared a new Bitcoin price forecast, suggesting that the pioneer cryptocurrency is on the verge of another major correction. The analyst suggested that the formation of a Lower Time Frame (LTF) Head and Shoulders pattern on the Bitcoin price chart is a potential confirmation of a crash to mid-$80,000. 

Bitcoin Price Projected To Crash To $83,600

The market’s recent downturn has negatively impacted Bitcoin’s value, prompting less-than-favorable predictions from top analysts. Severino posted on X (formerly Twitter) on March 6 that Bitcoin could soon experience another major pullback to new lows.

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The analyst projected that Bitcoin could crash to $84,800 – $83,600. This bearish price outlook is supported by the recent formation of LTF Head and Shoulder pattern on the Bitcoin chart. 

A Head and Shoulder pattern is a technical analysis formation that usually indicates a potential reversal from bullish to bearish. It appears as three peaks on a price chart, with the middle peak, which is the head, being higher than the others (the shoulders). Notably, the Head and Shoulder pattern is considered one of the most recognizable patterns for projecting a downtrend in a cryptocurrency.

In the case of Bitcoin, Severino’s chart illustrates a symmetrical triangle with an internal A-B-C-D-E wave-like structure. The black diagonal lines in the chart form the symmetrical triangle, which indicates lower highs and higher lows. Inside the triangle, red lines form the waves, suggesting that the Bitcoin price may be chopping sideways but with a bias towards completing the triangle.

Due to the Head and Shoulder pattern formation, Bitcoin could see its price break down to the lower boundary of the triangle around the mid $80,000 region. This price crash would complete the D wave and possibly test the next critical support area. 

Once Bitcoin drops to this level, Severino predicts that it could bounce back to new highs. The chart shows that Bitcoin could rally toward the E wave in the triangle, which is positioned around the $90,000 price level. 

Furthermore, the analyst’s Bitcoin chart indicates another deeper pullback after this price rebound to $90,000. Toward the right side of the chart, an arrow points downwards, suggesting that after the final E wave rally, Bitcoin could drop down towards $83,600 to $80,200. 

Analyst Warns Of Bear Trap Before Bull Run Finale

While many in the crypto market label this massive decline in the Bitcoin price as the beginning of the bear market, others believe that this price crash could be a mere bear trap. A market expert known as ’Crypto Caesar’ predicted that Bitcoin would be on the verge of its final bear trap before entering the last phase of this bull cycle. 

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This implies that Bitcoin is likely to face another sharp decline, shaking out weak hands before surging to a new all-time high. The analyst’s chart predicts that it could top out above $110,000, signaling the end of the bull market. 

Featured image from Pexels, chart from TradingView