Following the recent surge in the value of Dogecoin by more than 87 percent, Veteran Trader, Peter Brandt has stated that the cryptocurrency asset has exited the bear market that started in May 2021.
Investors King earlier reported that Dogecoin has been on the rise since the news of Elon Musk’s acquisition of Twitter filtered in.
The meme coin first rose by 17 percent on Friday before adding another 70 percent on Saturday.
While narrating a breakout chart that he shared on Twitter, Peter Brandt noted that although Dogecoin is out of the woods, it is nonetheless not a sign of a bull market.
He cautioned beginner traders not to confuse the end of a bear phase as the beginning of a bull market.
Peter said, ” A common mistake made by novice and wanna-be traders is assuming that an end to a bear phase of a market is automatically a signal that a bull market has begun. This assumption is most often wrong”.
However, some of his followers have expressed fear that the chart could be a breakout that will only deceive beginning traders and later go back into another phase of downward movement.
A Twitter user pointed out that a period of consolidation will help to determine the next movement of Dogecoin.
It would be recalled that the Dogecoin community has gone into a frenzy following its nearly 100 percent upward movement in just three days.
The recent movement of Dogecoin has been associated with the acquisition of Twitter which many cryptocurrency enthusiasts have interpreted as a good sign for Dogecoin and the entire cryptocurrency industry.
Similarly, Elon Musk has never hidden his love for cryptocurrency, particularly Dogecoin. He is often referred to as Doge-Father and his automobile company, Tesla accepts Dogecoin for the payment of some of its merchandise.
It is understood that the acquisition of Twitter by Elon Musk will create a friendlier social media industry for cryptocurrency.
Recently, Twitter has allowed users to attach their bitcoin wallet address to their profile while the social media giant is expected to adopt a more crypto-friendly policy to boost adoption.
Bitcoin Bulls Run Amok: Short Traders Hit with $90 Million Loss Amidst Unstoppable Surge
The relentless surge in Bitcoin’s prices has left short traders reeling as highly leveraged futures bets against the cryptocurrency incurred losses totaling $90 million on Tuesday alone.
This follows an additional $70 million in short liquidations on Monday, contributing to Bitcoin’s remarkable climb from $39,000 to $44,000 this week.
According to data from CoinGlass, most of these liquidations transpired on major crypto exchanges, including Binance, OKX, and Huobi.
The substantial liquidation figures have the potential to signal either a local top or bottom in a significant price movement, providing valuable insights for traders looking to strategically position themselves.
The surge in trading volumes, up by 25% in the past week, coupled with the growth in open interest from $17.2 billion to $20.2 billion since the beginning of December, underlines the increased market activity around Bitcoin.
Several factors are contributing to Bitcoin’s recent growth. Optimism is swirling around the potential approval of a spot exchange-traded fund (ETF) in the U.S., with traders factoring in anticipated rate cuts, buoying riskier assets like technology stocks and Bitcoin.
Additionally, the possibility of sovereign adoption is gaining traction as leaders in major economies express a Bitcoin-friendly stance.
Over the weekend, a notable group of traders committed to a $200 million BTC futures position, emphasizing the sustained demand for exposure to Bitcoin.
Amid continuous updates and changes in spot ETF applications, some industry observers foresee Bitcoin prices surpassing the $48,000 level in the coming weeks, further intensifying the cryptocurrency’s bullish momentum.
Dogecoin (DOGE) Rides Bitcoin Surge, Gains Over 10% in 24 Hours
The cryptocurrency market is witnessing a resurgence of risk appetite as more investors jump on unconventional choices such as Dogecoin (DOGE), Shibacoin, Memeland, etc.
In the past 24 hours alone, DOGE has surged by over 10% to $0.10 a coin for the first time since April following Bitcoin’s climb from $38,000 to $44,000.
This surge, coupled with the rising price, validates the upward trajectory of DOGE, signaling growing investor interest.
Funding rates on various exchanges have also experienced a substantial surge, hitting an annualized 50% or more.
These rates, reflecting a steep premium in perpetual futures relative to spot prices, indicate a prevalent bullish sentiment among investors.
It underscores their collective optimism, suggesting a belief that prices are poised for further upward momentum.
Joke cryptocurrencies like DOGE have historically exhibited high-beta characteristics, closely mirroring Bitcoin’s movements but often with greater intensity.
Investors are advised to exercise caution and monitor DOGE’s potential for extreme bullish action relative to Bitcoin, serving as a potential indicator of speculative exuberance typically observed in the latter stages of a widespread bullish trend.
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