Will BTC repeat history in the midst of DOGE’s latest rally?

Although the recent increase in Dogecoin’s [DOGE] price may be good for its owners, it could be bad news for the price of the most valuable coin, Bitcoin [BTC].

Santiment claims that a rise in the price of DOGE is a “reliable reflection of crowd euphoria” and that significant increases in the value of the meme coin can “be useful to foreshadow upcoming #Bitcoin drops.” On-chain statistics from 2021 showed that every time DOGE’s price increased, a proportional fall in the price of BTC occurred.

Data from Santiment showed a consistent increase in whale accumulation while the overall cryptocurrency market recovered from the abrupt impact of the cryptocurrency exchange FTX. Additionally, FTX’s unexpected collapse resulted in 1.36% of the coin’s total supply being dumped by BTC addresses holding 10 to 10,000 BTC in the first three weeks of this month.

However, this cohort of BTC investors resumed their coin accumulating once the market calmed down after FTX’s death. Santiment data shows that over the past five days, holders of 10 to 10,000 BTC have amassed almost 47,000 BTC.

The daily chart of Bitcoin’s performance showed that the king currency started a new bull cycle on November 23. The price increased by 2% when the Moving Average Convergence Divergence (MACD) line crossed the trend line. Additionally, the Chaikin Money Flow (CMF) dynamic line (green) for Bitcoin was seen at 0.06, indicating increasing currency accumulation.

Keep your cool

While coin accumulation has grown over the past few weeks (which is typically a sign of a price rally), a CryptoQuant analyst predicts that the price of the king coin may continue to fall.

On November 27, BTC allegedly created a downward-sloping pennant pattern, according to expert ghoddusifar. Although uncommon, he thought that this pattern was “usually associated with the continuation of the downtrend.” Ghoddusifar advised investors to hold off on any trade decisions until after a breakout as a result.

Furthermore, Ghoddusifar discovered that the price of Bitcoin stopped falling in December 2018, when the coin reached the Stock To Flow level of the preceding cycle.
In fact, at that time, the previous Stock to Flow served as both a support and a target level for Bitcoin. Bitcoin is once more getting close to the stock-to-flow price from its previous cycle. It’s possible that this price, which ranges from $8,800 to $11,800, will act as Bitcoin’s target and turning point (much like the previous cycle).