Dogecoin may be lining up for a deeper breakdown even if Bitcoin manages a short-term bounce, according to pseudonymous analyst VisionPulsed, who argues that a familiar 2022-style pattern is re-emerging across majors and memecoins.<\/p>\n
In a video published<\/a> December 16, the analyst frames the near-term setup around Bitcoin\u2019s daily stochastic RSI, which is moving from overbought back toward oversold. Over the past two months, every such reset on the daily chart has coincided with fresh lows in price. This time, he says, the structure is slightly different \u2014 and that matters for how Dogecoin trades the next leg.<\/p>\n On Bitcoin, VisionPulsed notes that the daily stochastic RSI is now \u201capproaching oversold\u201d after a stretch at elevated levels. In October, November and early December, similar full cycles from overbought to oversold on the daily timeframe were accompanied by Bitcoin making new lows.<\/p>\n \u201cThis is actually the first time that the stock RSI is going from overbought to oversold and we may not make a new low,\u201d he says, emphasizing that it is still \u201ctoo early\u201d to call it. If price instead prints a higher low as the oscillator resets, he argues that would signal a short- to medium-term trend reversal rather than a macro regime change, opening the door for a relief rally.<\/p>\n \u201cIf we do see a higher low form on the price as the stock RSI resets, then you should get the green light for a relief rally<\/a>,\u201d he adds. If the current low breaks instead, the rally \u201cis down to hell where you belong,\u201d as he puts it, underscoring that the bullish case hinges on that higher-low structure holding on the daily chart.<\/p>\n Dogecoin, in his view, is where the setup turns dangerous. While Bitcoin is attempting to carve out a higher low, Dogecoin continues to print lower lows on the same timeframe. VisionPulsed links this to a similar divergence in 2022, when Doge bled lower throughout the month while Bitcoin quietly based and formed higher lows.<\/p>\n \u201cVery similar to 2022,\u201d he says, adding that Bitcoin is, as of the recording, making \u201ca higher low even though Dogecoin is not.\u201d That pattern, he argues, suggests Doge could still catch a relief move if Bitcoin rallies, but from a much weaker starting point.<\/p>\n In such a scenario, he sketches a rally \u201cprobably somewhere up here to grab the peanut,\u201d placing that so-called \u201cpeanut zone\u201d roughly around the $0.20 area in January. He calls that level \u201cprobably your last chance to do whatever you\u2019re going to do\u201d before Dogecoin, in his base case, resumes its downtrend and heads \u201cdown to feed the pig pen\u201d \u2014 his shorthand for a deeper capitulation move to new lows in the $0.05 to $0.06 area<\/a>.<\/p>\n The base case for Dogecoin is a deeper retracement. He says. \u201cWe\u2019re coming down to feed the little piggies. Oink oink.\u201d Until Doge breaks its current downtrend, he sees \u201cno reason to assume it\u2019s bullish.\u201d<\/p>\n The timing, in his framework, is anchored on Bitcoin\u2019s position inside the lower band of a 7\u20138 day Gaussian channel and the interaction of several moving averages. He notes that Bitcoin has already spent close to four weeks in this \u201cpeanut gallery\u201d zone, versus roughly 63 days during the 2022 accumulation period.<\/p>\n If Bitcoin is still hovering near the upper range of the current structure by late January, he argues, \u201cyou\u2019re pretty much recreating 2022,\u201d which in his view would likely be followed by a capitulation leg lower.<\/p>\n A key signal to watch, he says, is the convergence of a white and a green moving average, which in the 2022 template marked the \u201cpoint of no return before Bitcoin collapsed.\u201d Those lines are now projected to converge in late January or early February.<\/p>\n Once they meet, his base case is that Bitcoin gets \u201csent through the blue moving average\u201d to test a red moving average in the $50,000\u2013$60,000 zone as a minimum downside target. That, in his scenario, is when Dogecoin finally goes down to the $0.05 area.<\/p>\n At press time, DOGE traded at $0.12974.<\/p>","protected":false},"excerpt":{"rendered":" Dogecoin may be lining up for a deeper breakdown even if Bitcoin manages a short-term bounce, according to pseudonymous analyst VisionPulsed, who argues that a familiar 2022-style pattern is re-emerging across majors and memecoins. In a video published December 16, the analyst frames the near-term setup around Bitcoin\u2019s daily stochastic RSI, which is moving from […]<\/p>\n","protected":false},"author":0,"featured_media":121297,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-121296","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/121296"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=121296"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/121296\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/121297"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=121296"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=121296"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=121296"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Dogecoin Bull Need To Watch Bitcoin\u2019s Stochastic Reset<\/h2>\n
How Low Can DOGE Price Go?<\/h2>\n