Dogecoin’s Potential Surge if Bitcoin Hits $122K: What Investors Can Expect

Dogecoin has been making significant strides this month, reaching $0.4795 — its highest price since May 2021 — as the broader cryptocurrency market gains momentum. With Bitcoin’s impressive rally toward new all-time highs, Dogecoin’s price action has mirrored the flagship cryptocurrency’s upward trajectory. As Bitcoin aims for a potential surge to $122,000, many investors are asking: Could Dogecoin continue its bullish rise?

Dogecoin’s Recent Performance and Correlation with Bitcoin

On November 28, Dogecoin traded at $0.40, marking an impressive 365% increase from its September low. This surge closely follows the price movement of Bitcoin, which recently surpassed $99,000 and is now approaching a new record. Historical data shows a strong correlation between Bitcoin and Dogecoin prices, with a correlation coefficient of 0.98, indicating that both assets tend to move in tandem.

As Bitcoin continues its upward trend, the likelihood of Dogecoin benefiting from the bullish momentum seems high. If Bitcoin crosses the $100,000 mark — and technical analysis suggests it could reach as high as $122,000 — it is expected that Dogecoin could follow suit, continuing its strong bull run.

Bitcoin’s Bullish Outlook and Dogecoin’s Prospects

Bitcoin’s recent price action has been driven by a technical formation known as the cup and handle pattern on the weekly chart. This pattern typically consists of a rounded bottom followed by a pullback or consolidation phase, which Bitcoin has seen from March 2024 until earlier this month. After breaking out above $99,000, Bitcoin’s technical indicators are now pointing toward a potential rise to $122,000.

In addition to technical patterns, Bitcoin’s seasonal fundamentals also support a strong finish to the year. Bitcoin prices historically tend to rise in November and December, and with spot Bitcoin ETFs gaining traction — now exceeding $101 billion in total assets — investor confidence is growing, further supporting the bullish outlook.

How High Could Dogecoin Go?

Should Bitcoin continue its rise to $122,000, Dogecoin’s price could also experience significant gains. The coin has already made impressive strides in 2024, having crossed a key resistance level at $0.2278, which was its high in March 2023. This breakout invalidated a previous double-top pattern and set the stage for further upward movement.

Dogecoin has also formed a golden cross pattern on the weekly chart, with the 50-week and 200-week moving averages crossing — a historically bullish signal. Additionally, Dogecoin has surpassed the 50% Fibonacci retracement level at $0.03715, signaling continued strength.

Currently, Dogecoin is consolidating in what appears to be a bullish flag or pennant pattern, which often precedes strong breakouts. If this pattern holds, Dogecoin’s next target could be its all-time high of $0.7400, representing an 85% gain from current levels. However, if the price falls below the critical $0.2278 support level, this bullish outlook could be invalidated.

Conclusion: Dogecoin’s Bullish Prospects Remain Strong

With Bitcoin’s price on the cusp of a potential breakout to $122,000 and Dogecoin’s technical indicators pointing to further gains, the meme-inspired cryptocurrency appears poised for a continued rally. While volatility remains a key characteristic of the crypto market, the strong correlation between Bitcoin and Dogecoin suggests that the latter could benefit significantly from Bitcoin’s anticipated price surge. As always, investors should monitor key levels and patterns, but the outlook for Dogecoin remains promising as the cryptocurrency market enters a potentially explosive period.