Ethereum Classic, Baby Doge Form Bullish Patterns As Bitcoin Rises Through Resistance

Bitcoin BTC/USD bust through the $42,000 level on Friday after breaking up from a bull flag Benzinga called out on Monday. The cryptocurrency works in cycles and after the leaders, which includes Ethereum ETH/USD, break out traders take their profits and put them into alt-coins.

Ethereum Classic ETC/USD and Baby Doge BABYDOGE/USD could benefit when the next alt-coin bull market takes place and they are already showing bullish patterns in preparation.

See Also: How to Buy Ethereum Classic

The Ethereum Classic Chart: On Friday, Ethereum Classic was attempting to break up from a triangle formation. The descending line of the triangle has been holding the crypto down since June 1 and Ethereum Classic has attempted to break up from it on eight separate occasions and failed. Ethereum Classic will hit the apex of the triangle on Aug. 9 and traders should expect either a bullish or bearish break before then.

In order to know if the pattern was recognized on the break from the triangle, traders will need to watch for increasing volume to come into Ethereum Classic. If volume does not enter on the break of the triangle, Ethereum Classic could continue to trade in a sideways pattern for a longer period of time.

The crypto is trading above the eight-day and 21-day exponential moving averages with the eight-day EMA trending above the 21-day, which is a bullish indicator. Ethereum Classic is also trading above the 200-day simple moving average (SMA) which indicates overall sentiment in the crypto is bullish.

  • Bulls want to see big bullish volume enter Ethereum Classic to get a daily close above the descending trendline. If the crypto can make the break it has room to push up to a resistance level at $57.91.
  • Bears want to see Ethereum Classic drop through the ascending trendline of the pattern and lose a support level at $50.93. If the crypto loses the level at support it could fall toward the $40.57 mark.

The Baby Doge Chart: Baby Doge looks to have found a bottom between Aug. 3 and 4 near the $0.0000000016 level. In the early morning hours of Aug. 5, Baby Doge woke up and ran to the $0.0000000027 level before entering into consolidation at about 9 a.m. EST. The crypto then consolidated down to the $0.0000000020 level through to Friday afternoon.

The rise up paired with the consolidation has settled Baby Doge into a bull flag pattern. If the pattern is recognized, traders will want to watch for big bullish volume to come in and push the coin up to a new high over $0.000000002711.

  • Bulls want to see big bullish volume enter Baby Doge to break it up from the pattern. Baby Doge has resistance near $0.0000000026 and $0.000000003.
  • Bears want to see Baby Doge continue to trend downward to negate the bull flag pattern. Baby Doge has support at $0.000000002 and $0.0000000018.

 

Photo: Courtesy Baby Doge and Ethereum Classic)

Posted In: Baby DogeEthereum classicCryptocurrencyLong IdeasShort IdeasTechnicalsMarketsTrading Ideas

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.