Investors are raising concerns about Elon Musk’s acquisition of Twitter. After soaring to a multi-week high price, the Dogecoin has crashed by 20% and is trading at $0.1381 with a total market cap of around $18 billion.

In an announcement on Monday, Twitter agreed to be acquired by Tesla and SpaceX CEO Elon Musk for $54 per share. This would give the company a value of more than $44 billion.

Related Reading | Dogecoin (DOGE) Struggles, Drops 9% After Elon Musk Twitter Buyout

Many people thought that Musk buying Twitter would help boost Dogecoin’s momentum. For 24 hours, it seemed as though they were right until the excitement and interest quickly dissipated from all sides.

Traders lost $281 million worth of “longs” to liquidation in the past 24 hours. Overall the total liquidation amount reached $350 million. This is the third-largest level in the month of April. Of that amount, about one-third ($128 million) came from bitcoin-tracked futures. While $92 million arose from ether futures. Futures tracking dogecoin lost $24 million, similar to Tuesday’s loss.

Doubts On Musk’s Twitter Acquisition

Some Twitter shareholders are concerned that the acquisition may not go through. For instance, their price per share is trading at $49, lower than offered ($54). In addition, the company currently has a market value of about $37 billion – $6 billion less than when this deal first began.

The acquisition of Twitter by Tesla may have unforeseen consequences for the company, particularly its impact on Elon Musk. Many believe he will exit this deal by paying a $1 billion breakup fee. 

China is the biggest market for Tesla, and the company has a large plant over there. So there’s a chance that if Musk tweets something unfavorable about China, the country can punish him. China has strict laws against free speech, and anyone who breaks them risks being penalized by law enforcement.

The fear that Musk will not buy Twitter has caused the Dogecoin price to crash. However, it’s believed most investors think if this acquisition closes, it’ll be good news for DOGE because he vows to add them as a payment option. 

Related Reading | Institutional Investors Bearish On Bitcoin, Ethereum. Here’s What They’re Buying

Dogecoin Price Prediction

The graph shows that the price of DOGE has been slowly dropping since it hit a high of $0.1725. This is called a double-top pattern.

A double-top is usually a sign that the price will go down. The DOGE coin is now close to the 25-day and 50-day moving averages. In addition, the Stochastic Oscillator has moved above the oversold level. It means that the price will probably keep going down. The next key support level is $0.1100. If the price goes above $0.15, this will invalidate the bearish view. 

 

                Featured image from Pixabay and chart from Tradingview.com

Originally posted here.
By: naveediqbalcrypto

Overview

Investors are raising concerns about Elon Musk’s acquisition of Twitter. After soaring to a multi-week high price, the Dogecoin has crashed by 20% and is trading at $0.1381 with a total market cap of around $18 billion. In an announcement on Monday, Twitter agreed to be acquired by Tesla and SpaceX CEO Elon Musk for $54 per share. This would give the company a value of more than $44 billion. Related Reading | Dogecoin (DOGE) Struggles, Drops 9% After Elon Musk Twitter Buyout Many people thought that Musk buying Twitter would help boost Dogecoin’s momentum. For 24 hours, it seemed as though they were right until the excitement and interest quickly dissipated from all sides. Traders lost $281 million worth of “longs” to liquidation in the past 24 hours. Overall the total liquidation amount reached $350 million. This is the third-largest level in the month of April. Of that amount, about one-third ($128 million) came from bitcoin-tracked futures. While $92 million arose from ether futures. Futures tracking dogecoin lost $24 million, similar to Tuesday’s loss. Doubts On Musk’s Twitter Acquisition Some Twitter shareholders are concerned that the acquisition may not go through. For instance, their price per share is trading at $49, lower than offered ($54). In addition, the company currently has a market value of about $37 billion – $6 billion less than when this deal first began. The acquisition of Twitter by Tesla may have unforeseen consequences for the company, particularly its impact on Elon Musk. Many believe he will exit this deal by paying a $1 billion breakup fee.  China is the biggest market for Tesla, and the company has a large plant over there. So there’s a chance that if Musk tweets something unfavorable about China, the country can punish him. China has strict laws against free speech, and anyone who breaks them risks being penalized by law enforcement. The fear that Musk will not buy Twitter has caused the Dogecoin price to crash. However, it’s believed most investors think if this acquisition closes, it’ll be good news for DOGE because he vows to add them as a payment option.  Related Reading | Institutional Investors Bearish On Bitcoin, Ethereum. Here’s What They’re Buying Dogecoin Price Prediction The graph shows that the price of DOGE has been slowly dropping since it hit a high of $0.1725. This is called a double-top pattern. A double-top is usually a sign that the price will go down. The DOGE coin is now close to the 25-day and 50-day moving averages. In addition, the Stochastic Oscillator has moved above the oversold level. It means that the price will probably keep going down. The next key support level is $0.1100. If the price goes above $0.15, this will invalidate the bearish view.    Featured image from Pixabay and chart from Tradingview.com

The Post

Investors are raising concerns about Elon Musk’s acquisition of Twitter. After soaring to a multi-week high price, the Dogecoin has crashed by 20% and is trading at $0.1381 with a total market cap of around $18 billion.

In an announcement on Monday, Twitter agreed to be acquired by Tesla and SpaceX CEO Elon Musk for $54 per share. This would give the company a value of more than $44 billion.

Related Reading | Dogecoin (DOGE) Struggles, Drops 9% After Elon Musk Twitter Buyout

Many people thought that Musk buying Twitter would help boost Dogecoin’s momentum. For 24 hours, it seemed as though they were right until the excitement and interest quickly dissipated from all sides.

Traders lost $281 million worth of “longs” to liquidation in the past 24 hours. Overall the total liquidation amount reached $350 million. This is the third-largest level in the month of April. Of that amount, about one-third ($128 million) came from bitcoin-tracked futures. While $92 million arose from ether futures. Futures tracking dogecoin lost $24 million, similar to Tuesday’s loss.

Doubts On Musk’s Twitter Acquisition

Some Twitter shareholders are concerned that the acquisition may not go through. For instance, their price per share is trading at $49, lower than offered ($54). In addition, the company currently has a market value of about $37 billion – $6 billion less than when this deal first began.

DOGE is currently trading at $0.138, losing its yesterday gain | Source: BTC/USD chart from Tradingview.com

The acquisition of Twitter by Tesla may have unforeseen consequences for the company, particularly its impact on Elon Musk. Many believe he will exit this deal by paying a $1 billion breakup fee.

China is the biggest market for Tesla, and the company has a large plant over there. So there’s a chance that if Musk tweets something unfavorable about China, the country can punish him. China has strict laws against free speech, and anyone who breaks them risks being penalized by law enforcement.

The fear that Musk will not buy Twitter has caused the Dogecoin price to crash. However, it’s believed most investors think if this acquisition closes, it’ll be good news for DOGE because he vows to add them as a payment option.

Related Reading | Institutional Investors Bearish On Bitcoin, Ethereum. Here’s What They’re Buying

Dogecoin Price Prediction

The graph shows that the price of DOGE has been slowly dropping since it hit a high of $0.1725. This is called a double-top pattern.

A double-top is usually a sign that the price will go down. The DOGE coin is now close to the 25-day and 50-day moving averages. In addition, the Stochastic Oscillator has moved above the oversold level. It means that the price will probably keep going down. The next key support level is $0.1100. If the price goes above $0.15, this will invalidate the bearish view.

 

Featured image from Pixabay and chart from Tradingview.com

Losing sight of the bigger picture can always lead to hasty decisions in the crypto industry. It usually happens in the short term and the consequences are usually felt weeks later. Speaking of the market, Bitcoin and other alts are currently on a strong bullish run. Ethereum, Cardano, and other Alts were improving their market value as well but, it might be time to catch a breath.

In this article, we will try to analyze if a potential drop could unfold itself over the current week (However, it is important to understand that the corrections could be lagged or invalidated as well owing to the current volatility).

Why should the market correct?

Bitcoin crossing above $40k-$42k was a crucial moment in the recovery. It essentially confirmed the presence of strong bullish momentum, but strong rallies should facilitate a healthy market structure as well. Now, Bitcoin did decline for 4 days straight between 31st July-3rd August but it formed a lower high before moving above its immediate top.

Yet, there were certain signs already indicative of a potential correction going forward.

On the 12-hour chart, there is a clear bearish divergence forming at the moment, which ideally might take Bitcoin down to $40k-$42k. Bearish divergences on a longer time frame are stronger signals that unfold over time. A significant on-chain signal was also observed.

The current Realized Cap of Bitcoin is significantly lower than the range witnessed during the early bull run of Q1. This is either a strong bullish false, as fewer investors might be moving the price up, or a consolidating process to push the realized cap higher on average.

Either way, there are strong signs of a correction period.

Currently, Ethereum is one of the top assets, that is not looking at strong resistance immediately. ETH’s path to $4300 is currently easier than BTC’s path to $64,000 but ETH has climbed since 21st July without recording one lower high in the charts.

On-chain, its active addresses were not ranging at a congestion rate at the moment. There are functionality transactions with NFTs and DeFi resurgence but organically, ETH’s had neutral signals.

Cardano is potentially facing strong resistance at $1.50 and it is presently backing its price rise with very little trading volume in comparison to the activity in April-May.

Does analyzing only Bitcoin, Ethereum and Cardano make sense?

In the short term, it might be more variable, but on a longer time frame, yes. The trio currently makes up more than 77% of the total crypto market cap. A drop in their liquidity will automatically decline the collective market’s value.

Bitcoin has opened its 4th consecutive week on a green candle which was lasted witnessed during  January-February. It happened only once through the bullish rally of Q1-Q2. The January’s 4 week-streak was met with a red, only time will tell what unfolds over the next couple of weeks now.