Bitcoin rebounds to $ 56,000 as Dogecoin price holds up on weekly gains of 420%

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Bitcoin (BTC) made a stable comeback on Tuesday thanks to new bullish news from PayPal combined with solid on-chain indicators.

BTC / USD 1 hour candle chart (Bitstamp). Source: TradingView

# Doge420 aims to sprout $ 4.20 Dogecoin

Cointelegraph Markets Pro and TradingView showed that BTC / USD rose to $ 56,000 during Tuesday’s trading, hours after hitting local lows of $ 53,300.

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With the volatility still in place, the pair looked increasingly reliable above $ 52,000, a significant support zone and the floor seen by all-time highs during last Sunday’s flash crash.

News that PayPal’s own payment company Venmo had started buying and selling cryptocurrencies to its app seemed to fuel the recovery. On the other hand, a “Dogecoin Day” triggered by social media put pressure on Bitcoin’s immediate upside prospects as funds continued to flow into Dogecoin (DOGE) that day.

As Cointelegraph reported, the goal of the “celebration” is to bring DOGE / USD to $ 4.20 to coincide with the date and week that SpaceX “Technoking” Elon Musk promises, with its latest version “a literal one Put Dogecoin on the literal moon “rocket launch.

The hashtag # Doge420 was trending on Twitter at the time of writing, with DOGE / USD trading at just over $ 0.38, which happened to be up 420% in a week but remained unchanged on the day. US traders hadn’t woken up yet and left the prospect of profits open later in the day.

The RSI indicator is telling the BTC bulls to keep the faith

Back at Bitcoin, traders watched an indicator that both signaled solid support at $ 52,000 and signaled that this week’s decline would now definitely rebound.

The Stochastic Relative Strength Index (RSI), an expression of RSI’s own strength, suggested that Sunday’s decline was already following the pattern of six previous pullbacks in Bitcoin’s current bull run.

As such, daily performance should now cause BTC / USD to lift off from its recent high and drag further up.

TradingView account Elliot0511, who uploaded a chart showing the habitual behavior, said in comments that there is no reason to believe that this time around would be any different. It summarized:

“As we can see from the graphic, we have double confirmation that this DIP is almost at the end. We can see this by the fact that in addition to the fact that the price is going back to the main support, we also have a stab RSI at 0, this only happened 6 times from the start of the bull market and there has always been a rebound. I don’t see any reason why the same thing shouldn’t happen this time. The bull market has only just begun. Don’t be frightened because there is no reason. ”

Annotated stochastic BTC / USD RSI compared to the spot price chart. Source: TradingView

The popular Twitter account IncomeSharks also highlighted the floor price level, pointing out that declining DOGE inflows could fuel the comeback of Bitcoin.

“If you’re ready to buy a hyped meme coin at these prices, you shouldn’t have a problem adding a bitcoin spot here,” he told followers on Tuesday.

“As soon as $ DOGE is dumped, we should see a nice recovery. There’s no point talking about a price below $ 52,000 unless that’s not what I’m thinking. “