The Critical Price Level For Dogecoin - Is It Time To Buy The Dip For BTC, ETH & Doge? Crypto Breakdown February 23, 2022

Episode Summary:

Bitcoin RSI (relative strength index) has dipped below 40% so it does look like Bitcoin is becoming oversold. This would give a solid buying opportunity using dollar cost averaging method.

 What is dollar cost averaging?

Dollar cost averaging is an investment strategy that reduces volatility for your trades by breaking down a sum of money into smaller portions to trade with.

Ethereum

Ethereum may have a little bit left in it to rally. This this is a very pivotal time for Ethereum as it is below the 50 day moving average, as well as the 25 day moving average.

Dogecoin

Dogecoin has been trading below its 25 day moving average for quite some time. Now with RSI is sitting at 40%, it is a relatively strong time to be looking to purchase some this coin. But with a significant downtrend, Dogecoin may not be ready for the reversal.

Host:

Joe Dewitt Follow at: https://twitter.com/metabitz

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Unedited Transcript:

Hey everybody happy Wednesday. My name is Joe Dewitt, and this is the crypto breakdown today. I'm going to discuss if now is the time to be buying the dip and everything we need to know about blue-chip cryptos moving forward, starting off per usual with Bitcoin. Bitcoin has been down trending for a few days.

So taking a look over at Bitcoin, Bitcoin has been down trending for the last week and a half. Although today we are sitting at 4% up on the day. Now Bitcoin price is in a position to rally here. It looks like momentum is coming in strong with buying pressure. As volume is continuing to grow. Now, the concern I do have is a lot of media and institutional investors are displaying the notion of a bear market or a longer correction for Bitcoin.

Now, as one of the oldest rumors, By the rumors sell the news at a time like this. When everyone is concerned about something like this, um, it almost shows that the reversal is upon us as the RSI relative strength index has dipped below 40% does look like Bitcoin is becoming oversold. Now, this would give a solid buying opportunity, which is what I would call dollar cost averaging.

For those of you that don't know what dollar cost averaging is, it is essentially an investment strategy that reduces volatility for your trades. By essentially what it is, is breaking down a sum of money into smaller portions to. So, for example, if you wanted to invest $500 into Bitcoin, you would essentially purchase $150 of Bitcoin today.

Wait a few days, or even the next day, and you'd purchase $150 again, and then you'd wait a few more days or you wait for the price to move in the direction that you want to lower the average of your purchases. No, this has been a proven way to get better, um, trades just by, um, averaging out the average price that you buy at on the alternative side to spending all your trade in one transaction, which could be good, could be bad.

It allows for, um, a little bit less volatility, but as Bitcoin is currently trending, I think this is definitely an opportunity to dollar cost. Now taking a look over at a theorem, uh, three rooms candlestick for the day, actually just tested its current support level sitting at about $2,670. The Ethereum price is up 5% today and Ethereum may have a little bit left in it to rally.

As volume is coming in relative strength index sitting at 4,500. Now, this is a very pivotal time for a theorem here as it is below the 50 day. Moving average, as well as the 25 day moving average. Now there was a golden cross recently, which is the 25 day moving below that 50 day moving average, which means a recent price is now getting lower than that.

Long-term price of that 50 day moving average and does signify. A bit of a downtrend, although we have been down trending for about two months now, and this could absolutely be a reversal time for Ethereum. Here has price looks to push above that 25 day moving average. Um, within the next few weeks, if price action can get above that level, it could easily push towards that 3,200 resistance that we have battled a few times on, which will be our new.

Target. I'm just taking a look over at Ethereum. It is definitely a good opportunity to dollar cost average. One thing I would say to look for when you are looking to dollar cost average is draw out some levels, um, or use a TD sequential to see some levels of resistance and support that have been previously used and draw some, draw, some momentum levels there and zones to see actually where price is bouncing.

So on price falls to a lower level of a zone and faces very strong support. That is usually a good opportunity to be buying. Push towards that next level of resistance. Now this is not always the case as sometimes price action will fall below. Um, but that is the point of dollar cost averaging is that one, it falls lower than you would purchase even more.

And the idea is that we never actually know where price is moving or where it's going to go. And that's why dollar cost averaging helps us stay prepared for what might happen. Now. Finally, taking a look over at dos. Doge coin was looking pretty good for a few weeks back in early February. Um, now I would say I'm not so sure we are facing down towards the floor here sitting at about 12 cents that we have visited about a month ago.

And dose one has been trading below its 25 day moving average for quite some time. Now RSI is sitting at 40%, so it is a relatively strong time to be looking to purchase some those coin. But with a significant downtrend, I am not quite sure. Doge coin is ready for the reversal. So if you were looking to buy the dip on those coin, what I would recommend here would be to wait for those coin price to hit that 11 cents as price is a approaching a new floor.

The RSI percentage level could definitely get a little bit lower getting down towards that 30%. Doge coin has been accumulating, lower highs, as well as lower lows. There has been no sign of a reversal. So I would say doge coin has a bit more room to fall. As price looks to fall down towards that 11 cents.

That may be a good opportunity to dollar cost average for some doge coin. Now on the upward swing dose coin has strong resistance sitting at 15. As price reclaims at 15 cents, that could be a good selling opportunity to make some profits as well as dollar cost average on the way up as we hope to approach that 20 cents at the 50 day, moving average.

Now, these are just some opportunities of some of our most talked about coins to buy the dip. Although keep in mind what I'm mentioning with the dollar cost averaging is I'm not necessarily saying that this is the lowest that these coins will go or that this is the prime time to buy the dip. What I like to say is with the dollar cost averaging is.

Space out your transactions into a few days, if not even a few weeks to actually get a step ahead of the direction that it's moving, rather than making just one big purchase and waiting to see which direction it goes, make smaller purchases on the way down and on the way up to help average out your price.

That's all the time we have for today. Guys. Thank you so much for doing. You can follow, subscribe to the podcast, which will all be in the description below. Have a great day quickly. I just want to say that this is not financial advice. I encourage everyone out there to please do your own research before investing in cryptocurrencies, as they are very volatile assets.

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