Bitcoin and Dogecoin are among the most closely watched cryptocurrencies in this cycle, with Bitcoin's price increase largely flowing into Dogecoin. At one point, the price correlation between Dogecoin and Bitcoin was 0.97.

Interestingly, recent market volatility has seen Bitcoin return above the $100,000 price point once again, with the leading cryptocurrency hitting highs of up to $102,700 in the past 24 hours. However, this has not yet translated into a corresponding increase in Dogecoin's price, with the meme coin breaking below the support level of $0.40 in the same timeframe.

Dogecoin's recent performance in the context of Bitcoin's surge

Bitcoin has once again surpassed the psychological threshold of $100,000 after a price increase of 7.5% from a low of $94,900 on December 10. Notably, this price surge is the latest recovery of Bitcoin after being rejected at the $100,000 price level, causing a wave of liquidations among other cryptocurrencies.

But while Bitcoin has shown resilience, Dogecoin has faced significant challenges in maintaining its upward momentum. Dogecoin rose to $0.48 on December 8, a level it hadn't reached since 2021. However, upon examining the price movements of this meme coin in detail, we see a continuous struggle with the resistance level of $0.48, which now seems to be a barrier to breaking this market cycle.

At the time of writing, Dogecoin is currently trading at $0.395, meaning it has lost about 17% since hitting a 2024 high of $0.48. Currently, Dogecoin has dropped around 13% in the past week, making it the worst-performing coin among the top 10 cryptocurrencies by market capitalization in this timeframe.

Could Dogecoin reach a new all-time high in this cycle?

Market analysts have made varying predictions about the likelihood and timeline for Dogecoin's price to reach new all-time highs in the current cycle. The last time Dogecoin peaked was at $0.73 during the cryptocurrency price surge in May 2021. The outlook for surpassing this level in this cycle remains, but the road ahead seems challenging, especially if Dogecoin's price continues to diverge from Bitcoin's upward momentum.

However, one could argue that the general consensus is that Dogecoin will soon continue its upward trend. Historically, spikes in Dogecoin's price have been driven by surges in retail investor activity, often fueled by social media rumors like payments on X and similar things. For Dogecoin to surpass its 2021 highs, a similar wave of enthusiasm will need to emerge with significant trading volume and renewed interest from both retail and institutional investors.

As 2024 comes to a close, a more plausible scenario for Dogecoin reaching new highs may emerge in early 2025. By then, changes in the global economic and political landscape, including Donald Trump's presidential inauguration, could foster optimism in the cryptocurrency space.

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