3 reasons why Bitcoin, Ethereum, and Dogecoin are Struggling

The leading cryptocurrencies, Bitcoin, Ethereum, and Dogecoin, have been experiencing a downturn amidst the growing macroeconomic uncertainties. Although they have shown considerable resilience following the recent massive wipeout, the market sentiment remains bearish. Experts recommend exercising caution while keeping a close eye on key market indicators.

Top Reasons Why Bitcoin, Ethereum, and Dogecoin Are Struggling

Bitcoin (BTC), Ethereum (ETH), and Dogecoin witnessed a sharp decline in the past week. Bearish to neutral sentiment continues to prevail on the market. As of 26th September, the BTC is trading at $109,605.90, and the price has declined by 1.86% over the past 24 hours. The ETH, on the other hand, is rallying around $3,916.87 with a 2.79% decline. The popular memecoin Dogecoin is also struggling with a 3.11% decline and trading around $0.2256. The ongoing bearish sentiment is attributed to pessimistic views on the macroeconomy and recent massive liquidations in the crypto market. The following are the top 3 reasons.

• The anticipations regarding a possible shutdown of the U.S government. The anticipation has reduced investor confidence and drained the risk appetite. Amidst shutdown fears, the investors are resorting to traditional investment options and staying away from risky investments.
• The $1.6 billion liquidations have sent shockwaves across the crypto market. The prices of BTC, ETH, Dogecoin, and other altcoins plunged following the massive wipeout. Although major coins have returned to key support levels, the crypto market is still reeling under pressure. 
• The third major reason for the bearish momentum is the forthcoming expiration of the BTC and ETH options. With billions of dollars locked in options, a flurry of trading activities is expected. As the traders strategize, the crypto market may experience high volatility.

In addition to the above-mentioned reasons, the investors are also keeping a close eye on the U.S inflation data, which will be released on Friday.

How Bitcoin, Ethereum, and Dogecoin are Faring Now?

As discussed earlier, BTC is trading around $109,605.90. The Fear & Greed Index is at 28, indicating overcaution from investors. The 14-Day Relative Strength Indicator (RSI) stands at 35.96, indicating a neutral stance. Despite the bearish sentiments, BTC is selling above the 200-day simple moving average (SMA) of $ 104,076. The leading cryptocurrency has a market cap nearing $ 2.17 trillion. 

ETH, on the other hand, also witnessed a decline in prices. The bearish sentiment about the leading altcoin continues with a Fear & Greed Index value of 28. Additionally, the crypto coin only had 12 green days in the past 30 days. Yet, the ETH is trading above the 200-day simple moving average.

The Dogecoin is exhibiting high volatility of 10.15%. The market sentiment remains bearish. The memcoin also has a yearly inflation rate of 3.42%. 

Future Outlook

Crypto experts predict that BTC will go up marginally in the upcoming week, given that the macroeconomic landscape remains positive. The forecasted price range is $ 109,950 to $ 121,887. The analytics are optimistic regarding ETH, and the price is projected to reach around $ 5,613.92 in the upcoming week. The experts are predicting a bumpy ride for Dogecoin in the upcoming week, with ups and downs, with a lowest value of around $ 0.21959.

Despite the positive outlook, investors should remain cautious as the threat of a possible shutdown of the US government and expiry of options is still looming. The crypto community believes that the market has matured, and the digital currencies are resilient enough to absorb market shocks. Nevertheless, investors are recommended to keep themselves updated about key economic indicators and adapt risk mitigation strategies such as portfolio diversification.