Will Bitcoin (BTC) fall to $40,600? Dogecoin DOGE price may plummet
Dogecoin will fall along with Bitcoin in the massive price correction recently predicted by Ali Martinez. Martinez mentioned in a post on X (formerly Twitter) that the TD sequential indicator has given a sell signal on Bitcoin's 2-month chart, expecting a price correction.
The cryptocurrency analyst further stated that if Bitcoin fails to hold the $51,000 support level, its price may fall to $40,600.
Due to the price correlation between the two crypto assets, it is expected that the decline in Bitcoin price will also cause the Dogecoin price to plummet. Data from market intelligence platform IntoTheBlock shows that the price correlation between Dogecoin and Bitcoin is 0.9, indicating a strong price correlation.
As we all know, Bitcoin, as the leading cryptocurrency, has a huge impact on the entire cryptocurrency market. Therefore, the price drop will undoubtedly bring downward pressure on Dogecoin. It’s worth mentioning that Dogecoin was one of the currencies that suffered the most in price decline after Bitcoin’s crash on August 5, when the flagship cryptocurrency fell below $50,000.
September wasn’t the best month for Dogecoin either. CryptoRank data shows that the bellwether meme coin has posted monthly losses in all but three Septembers since 2014. The last time Dogecoin was profitable in September was in 2021.
Dogecoin’s large transaction volume has surged, suggesting that cryptocurrency giants are currently hoarding in large quantities. The imbalance in buy and sell volume is also in Dogecoin’s favor
