Bitcoin (BTC) surged past the significant $64,000 mark on Saturday, May 4, reaching an impressive intra-day high of $64,540 by 11:30 a.m. GMT. Despite the customary weekend lull when traders often take time off, trading volume saw a remarkable increase of over 15%, indicating heightened activity in the market.
However, the surge in Bitcoin’s price also led to a cascade of liquidations in the cryptocurrency market. In the aftermath of Bitcoin’s ascent beyond $64,000, over $175 million in total liquidations were recorded. Short positions accounted for the majority of liquidations, totaling $150.10 million, while long positions also suffered losses, with over $25 million liquidated.
BINANCE LEADS IN LIQUIDATIONS AS BITCOIN BREAKS RESISTANCE, CAUTION URGED AMID WEEKEND VOLATILITY
During Bitcoin’s surge past the $64,000 mark, Binance, the largest cryptocurrency exchange by trading volume, recorded the highest liquidations, totaling $72.57 million. Following closely behind was OKX, with liquidations amounting to $61.59 million. Notably, the largest single liquidation order occurred on Binance, where a staggering $5.09 million was lost in a trade involving the Ethereum trading pair against the Tether (USDT) stablecoin.
The surge in Bitcoin’s price not only resulted in significant liquidations but also marked a breakthrough above a month-long trendline that had been acting as resistance. However, traders looking to capitalize on this breakout should exercise caution, especially considering the expected weekend volatility. While the breakout holds the potential for further gains, confirmation is crucial before committing to long positions in Bitcoin.
DOGECOIN (DOGE) LEADS MEME COIN RALLY, CAUTION ADVISED AMID INFLECTION POINT
As Dogecoin (DOGE) price exhibits a bullish trend, mirroring a broader surge in meme coins, investors are cautiously eyeing its sustainability. DOGE, often dubbed the “Bitcoin of meme coins,” has confirmed its bottom at $0.1290 after undergoing three consecutive retests. Alongside DOGE, its counterparts such as Shiba Inu (SHIB), Pepe (PEPE), Dogwifhat (WIF), and Floki Inu (FLOKI) are also witnessing double-digit gains.
However, investors considering long positions in DOGE should proceed with caution due to several factors:
- Bollinger Indicator Analysis: DOGE price has not yet confirmed a move above the centerline (Simple Moving Average) of the Bollinger indicator on the one-day timeframe. This could signify a potential shift in momentum and a reversal to the downside.
- Volatility Consideration: With DOGE price nearing the centerline of the Bollinger indicator, lower volatility may precede increased volatility and significant price movements in either direction.
- Relative Strength Index (RSI): Despite rising momentum, the RSI remains around the mean level of 50, indicating no dominant trend in the market currently.
- Bitcoin Price Impact: Bitcoin’s price remains below the critical level of $67,133, which could impact DOGE’s short-term uptrend if not surpassed.
- Address Activity: Data from IntoTheBlock’s Active Addresses by Profitability metric reveals that a significant portion of DOGE addresses (81.45%) are ‘In the Money.’ While this suggests bullish sentiment, it also implies potential selling pressure as holders may seek to realize profits.
As the speculative nature of meme coins continues to drive market sentiment, investors must remain vigilant and assess the evolving dynamics, especially concerning potential volatility shifts and Bitcoin’s influence on DOGE’s trajectory.
DOGECOIN PRICE PREDICTION: NAVIGATING POTENTIAL SCENARIOS
For investors eyeing Dogecoin (DOGE), several key price levels and technical indicators offer insights into potential scenarios:
- Bullish Breakout Scenario:
- If DOGE bulls manage to propel the price above the $0.1498 centerline of the Bollinger indicator, confirmed by the RSI crossing decisively above the mean level of 50, it could signal a favorable buying opportunity.
- Conservative bulls may opt to wait for a retest of the centerline, confirmed by a higher high on the RSI.
- A strong move above the $0.1649 resistance level could attract more buy orders, potentially pushing DOGE price beyond the $0.1800 threshold.
- In a highly bullish scenario, DOGE could target the psychological level of $0.2000 or even aim higher towards the $0.2288 range high, particularly if Bitcoin marks a new all-time high above $73,777.
- Bearish Rejection Scenario:
- Conversely, a rejection from the centerline at $0.1498 might lead to a pullback in Dogecoin price.
- Losing support at $0.1290 would raise concerns, but the bullish thesis would only be invalidated after a candlestick close below $0.1151 on the one-day timeframe.
As investors navigate these potential scenarios, it’s essential to monitor key technical levels and indicators, considering the broader market sentiment and any developments in Bitcoin’s price, which often influences DOGE’s trajectory.
