Tech analyst and head of Factor LLC Peter Brandt wrote about the end of the downward cycle of the meme-cryptocurrency Dogecoin (DOGE).
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 https://t.co/Ib2T86Md0n
— Peter Brandt (@PeterLBrandt) October 30, 2022
“This is referred to as the bear channel, the breach of which ended the bear market for DOGE that began in May 2021,” he wrote.
Brandt warned that this should not be taken as a signal for further growth of the meme-cryptocurrency.
“A common mistake among novice traders who think that the end of a bear market is the automatic start of a bull market. This assumption is often wrong, ”added the technical analyst.
Over the past week, the price of Dogecoin has risen by about 100%, according to CoinGecko. The meme-cryptocurrency broke the $0.1 mark for the first time since May. The capitalization of the asset exceeded $16 billion, placing it eighth in the ranking.
Dogecoin went up on October 27 after Elon Musk posted a video of a visit to Twitter headquarters. The next day, the meme-cryptocurrency added another 10% after the purchase of the social network by a billionaire.
Musk is actively promoting meme-cryptocurrency. In April, he proposed lowering the cost of a Twitter Blue subscription and allowing users to pay for a premium service in DOGE.
In June, Musk reaffirmed his support for Dogecoin despite the bear market. Then he said that Tesla would continue to sell goods for DOGE and SpaceX would soon follow suit.
Recall that in October, Brandt ridiculed bitcoin supporters for using “laser eyes” on Twitter avatars and said that the first cryptocurrency bought in 2021 had become unprofitable today.
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