As the world's largest cryptocurrency, Bitcoin's position usually affects other cryptocurrencies.
Except for altcoin seasons, Bitcoin flows always coincide with other cryptocurrency flows.
Dogecoin, the largest meme coin, reflects Bitcoin sentiment. The price correlation of Dogecoin to Bitcoin is 0.77 out of 1, according to IntoTheBlock. This correlation sometimes hovers around 0.9, especially during rallies. Cryptocurrency expert Kevin said that Bitcoin’s success greatly influences Dogecoin’s price direction.
The current market dynamics have Dogecoin trapped between the overall golden pocket and the 0.5 overall Fibonacci levels. The golden pocket in technical analysis occurs between the 61.8% and 65% retracement levels. Technical analysis uses these levels as support and resistance areas, and a breakout could lead to a breakout.
After its surges in October and November, Dogecoin has failed to gain momentum. Dogecoin has surged nearly 400% during that period, fueled by excitement before and after the US presidential election. The meme coin is currently trading at $0.4, indicating a decline in positive sentiment. Dogecoin’s success is closely tied to Bitcoin’s market behavior, and Bitcoin’s struggle to surpass $100,000 has cast a shadow over it.
Kevin and other crypto experts are hopeful about the meme coin despite its stagnant price. Social media buzz is positive, and technical assessments suggest Dogecoin still has a long way to go.
“I don’t see anything that tells me the cycle is over, so this should head higher soon enough regardless of the short-term noise,” he said. Dogecoin is now trading at $0.404, down 3.5% in 24 hours. Bitcoin, however, is down 0.8% in 24 hours to $99,800.
