Bitcoin correction continues with drop below $44,000, Dogecoin outperforms


By Samuel Indyk

Investing.com – Bitcoin continued its recent slow decline on Thursday, with the price briefly dropping below $44,000 for the first time since 12th August.

The recent upside momentum in Bitcoin has slowed markedly this week but the price remains elevated compared to the lows hit in mid-July when Bitcoin was trading below $30,000.

Technical Picture

After falling back below the 200-day moving average (dma) earlier this week, that level is now acting as resistance around $45,600.

A move back above the 200-dma could open the door to the recent high near $48,000 before a move towards $50,000.

To the downside, the 23.6% Fibonacci level from the July low to the August high comes in around $43,600 which could act as support if a clean break below $44,000 is made.

The 8th August low at $42,800 could then also act as support.

Below that and $42,500 looks like a potential key level, as it marked the high print on 1st August.

Below this level brings the psychological $40,000 level back into play, a level that Bitcoin hasn’t traded below since 6th August.

“The medium-term outlook still looks promising for Bitcoin but the near-term could see profit taking continue and major prior resistance levels re-tested from above,” said OANDA Senior Market Analyst Craig Erlam in an emailed note.

At 13:22BST, Bitcoin trades around $44,350, down around 1% in the last 24 hours.

Dogecoin

One major cryptocurrency that hasn’t declined on Thursday is Dogecoin. The meme-based token trades higher by around 6% in the last 24 hours following an earnings update from Robinhood (NASDAQ:HOOD).

The trading platform reported quarterly results for the first time as a public company on Wednesday and said that Dogecoin trading accounted for 62% of its cryptocurrency revenue in Q2. Cryptocurrency trading accounted for 52% of transaction-based revenue during the quarter.

Further supporting the price of Dogecoin is news that a number of ‘Doge influencers’ are planning on holding ‘The Doge Conference’ in March next year. The conference is set to take place in Las Vegas with a unifying vision to “bring all crypto communities together”. It is not known which influencers and speakers will be attending the event.

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