Bitcoin vs. Dogecoin – Which crypto offers better returns in 2024?

Bitcoin and Dogecoin: Similarities, Differences, and Market Insight

Despite their fundamental differences, Bitcoin (BTC) and Dogecoin (DOGE) exhibit a strong correlation. In the short term, DOGE shows potential for a price increase while BTC may face a decline.

Bitcoin vs. Dogecoin: Key Differences

Bitcoin and Dogecoin share a common feature: they both use the Proof-of-Work (PoW) consensus mechanism. However, their supply is drastically different. Dogecoin has an unlimited supply, while Bitcoin has a limited supply of 21 million coins, making it a more scarce asset.

Price Analysis

At the time of writing, DOGE traded at $0.12, representing a 38.19% increase year-to-date (YTD). Bitcoin stood at $61,579, reflecting a 39.42% YTD increase. Notably, the correlation coefficient between BTC and DOGE is 0.98, indicating a strong positive relationship.

Short-Term Price Trajectory

According to an analysis of the In and Out of Money Around Price (IOMAP) indicator, Bitcoin faces resistance at $62,134, where 1.64 million addresses hold 759,670 BTC. On the other hand, it finds support at $60,793, where 755,240 addresses hold 445,280 BTC. This suggests that Bitcoin may experience a decline in the near term.

In contrast, Dogecoin shows a favorable short-term outlook. It has strong support at $0.12, where 86,480 addresses hold 6.87 billion DOGE. Therefore, DOGE is likely to trade at a higher value in the short term.

Conclusion

In the short term, Dogecoin appears to offer better return potential than Bitcoin. However, it's important to note that this analysis is based on current market conditions and may change in the future.