Bitcoin, Dogecoin Prizanalysis: August 3, 2021

Bitcoin prices have soared to more than $ 42,000 amid concerns about the US cryptocurrency tax.
The Dogecoin price risks falling once again to $ 0.16 after continued consolidation.

The Cryptocurrency is struggling with mounting pressure that has made it difficult for the Bulls to back up a winning streak recorded over the past few weeks. At first, Bitcoin pulled the entire Sunday up as it moved from levels below $ 30,000 to highs above $ 40,000. However, flagship cryptocurrency’s $ 42,000 fix appears to have led to losses across the board.

Bellwether cryptocurrency is trading at $ 38,750 after adjusting for weekend highs of $ 42,500. As sales orders increased, the chances of staying above $ 40,000 decreased. In October, the 200 October moving average (SMA) is now adding to the pressure on overhead.

Meanwhile, the main goal is to provide decidedly higher support, preferably above $ 38,000. Here the Bulls are planning their next offensive mission worth more than $ 40,000.

However, traders should be aware of the sell signal from the Moving Average indicator (MACD) on the four-hour chart. That means the bullish outlook is fading and sellers are taking control into their own hands. If the MACD takes a break to the midline, bitcoin may not stop at $ 38,000, but the drop could stretch its leg to $ 35,000.

12-hour BTC / USD chart

BTC / USD price chart from Tradingview
Dogecoin had forecast a close of 0.3 per cent in July, but saw its wishes surpassed by consolidation. The Meme coin continues to trade just over $ 0.2, while the 100 SMA caps rise immediately on the 12-hour chart.

Bollinger Bands emphasize side trade, suggesting that Dogecoin is in a restricted area for trade. As the bands narrow, the Doge approaches the break. However, Bollinger bands do not give the breakout direction. Traders can track the close above the top tire to confirm growth and below the bottom tire to adjust the price drop.

DOGE / US Dollar four hours

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