Bitcoin Stalls While DOGE ETF & CZ’s Dog Steal Spotlight
BTC Awaits Breakout, Stuck Between Support and Resistance
Bitcoin has been lingering below the 50-day Moving Average since February 5 and printed several “empty” candles where the body was almost non-existent. After a huge candle on February 3, when the price dropped to $91,500 and then rose to finish the day at $101,450, the main cryptocurrency started to move erratically, in a tight range below the 50 MA and below the key resistance at $100K.
This shows that there’s a lack of conviction and the market sentiment is mostly neutral towards the apex coin, BTC. However, there is chatter about new ETFs being launched, which could spark interest in the respective coins. One of the said coins is DOGE – the initial meme coin.
It’s interesting to see how a crypto coin that started as a joke, now captures the attention of major players on the financial scene. Grayscale is the initiator of the proposal to change its DOGE and XRP Trusts into Exchange Traded Funds (ETF). The Securities and Exchange Commission (SEC) officially acknowledged Grayscale’s application, which does not mean it will approve it but it’s a major change in stance from December. Back then the SEC was under a different leadership and did not seem to care about similar proposals. A Solana application was swiftly denied.
These are the early stages of the approval process but it looks like the new SEC leadership is more open to crypto innovations. Once Grayscale’s proposal makes it into the Federal Register, there will be a review period of up to 240 days. That is the maximum period the SEC has before they issue an official response regarding the new ETF.
CZ’s Dog
Former Binance CEO Changpeng Zhao (CZ) sparked a meme-coin frenzy when he revealed that he has a dog. Multiple meme coins were immediately created, trying to guess the name of his dog, some of them reaching millions in market cap. He later revealed that his dog’s name is Broccoli.
As expected, a memecoin named Broccoli was launched just minutes after the reveal, and all the other coins that tried to guess the name swiftly dropped. Now, there are a bunch of memecoins that remix the name, such as BroccoliDog, MiniBroccoli, etc. and the frenzy will probably continue.
Chart Analysis – BTC/USD
Bitcoin is currently drifting sideways without a clear direction and for this to change, it must break a notable support or resistance barrier.
The nearest barriers are the resistance at $100K, which is a psychological and technical level, the 50-day MA, and the bullish trend line that connects the most recent lows. The 50-day MA is just above the price and is totally flat, reflecting the lack of pressure from either side, so we may see the price move above and below it without clear intent.
A break of one of the other two elements ($100K or the trend line) would likely spark a stronger movement in the direction of the break.
