5 min readBitcoin is holding steady above 67k after booking gains yesterday but is still on track for a 1% loss this week. This week, the world’s largest cryptocurrency failed to push above the key 70k level amid the lack of positive trading catalysts.
Risk sentiment has remained soft throughout the week, with risk assets struggling to advance. In addition to Bitcoin falling, global stock indices have dropped after six straight weeks of gains.
Bitcoin failed to retake the 70k psychological level investors have been watching closely for a breakout from the 7-month downtrend on less hawkish rate cuts and US election uncertainty.
Stronger-than-expected jobless claims and service sector activity figures add to a slew of stronger-than-forecast data supporting the view that the Fed will gradually cut interest rates.
Meanwhile, attention is also on the US election on November 5th. While Trump is pro-crypto, his core policies are also inflationary, which could cause the Fed to slow the pace of rate cuts further. While Trump has edged ahead in some odds markers, other polls are still too close to call.
The broader cryptocurrency market was also under pressure on Friday, with Ether underperforming, falling 2.3% below 2500. Ether is expected to see increased volatility amid the expiry of $1 billion in options later today.
Solana continues to outperform, adding 8.7% this week amid increased blockchain activity, specifically surrounding mill coin tokens linked to AI.
Dogecoin consolidates after 20% gains.
Dogecoin surged over 20% in October and is up 30% over the 11 weeks amid a surge in retail interest. DOGE briefly reached a 5-month high this week at 0.1484 as social media mentions rose by over 18%.
The price has since eased lower from this peak and trades at 0.1375 at the time of writing in what could be a bout of profit-taking. After such strong gains, it’s not unusual to see some profit-taking, especially as there has been a sudden surge in wallets that are in profit.
According to data from IntoTheBlock, 78% of DOGE holders, around 5 million addresses, were in profit, while 18% were in losses.
DOGE whale activity falls significantly this week
Meanwhile, DOGE whale activity has fallen significantly this week. After a period of accumulation, large DOGE addresses have stopped their bullish activity amid rising uncertainty. Over the last week, large DOGE transactions exceeding $100,000 declined from 17 billion to 9 billion, which shows a lack of interest, which could mean that the rally is also showing signs of exhaustion.
Whales control a large percentage of the Dogecoin supply, and therefore, falling DOGE whale activity could dampen volatility and result in price consolidation.
Where next for DOGE?
DOGE is consolidating around at 0.1375. Buyers will look to break above 0.1484 to create a higher high. Sellers will look to break below 0.1278 the 200 SMA for sellers to gain traction.
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