A Look At Bitcoin Heading Into The Weekend: Will Dogecoin, Ethereum Be Affected?

Zinger Key Points
  • Bitcoin has been trading in a falling channel pattern on the daily chart since July 29.
  • The pattern is considered to be bearish until a stock or crypto breaks up from the upper trendline.

Bitcoin BTC/USD was trading mostly flag during Friday’s 24-hour trading session after attempting to break up bullishly from a falling channel pattern on the daily chart, which the crypto has been stuck in since July 29.

Bitcoin’s 24-hour trading range has tightened significantly lately, offering little volatility for day traders who are attracted to Bitcoin and other cryptos because of their historical wild price action.

Dogecoin DOGE/USD and Ethereum ETH/USD have been following Bitcoin, trending slightly lower since the end of June, although Dogecoin and Ethereum were slightly stronger on Friday, trading up over 2% and 3%, respectively. Because Dogecoin and Ethereum are showing relative strength to Bitcoin, if the apex crypto can break up from its falling channel pattern on the weekend, Dogecoin and Ethereum are likely to gain steam.

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The Bitcoin Chart: Bitcoin is trading in a confirmed downtrend within the falling channel, with the most recent lower high printed on Wednesday at $23,650 and the most recent confirmed higher low formed at the $22,392 mark on Thursday. If Bitcoin continues to trade lower during Saturday’s 24-hour session, Friday’s high-of-day will mark the next lower high within the pattern.

  • If Bitcoin breaks up bullishly from the falling channel over the weekend, the measured move is about 7.6%, which suggests Bitcoin could shoot back up toward the $24,400 level. Patterns on stocks and cryptos often repeat, which makes a break up from the channel likely because when Bitcoin last traded in a falling channel pattern, between July 20 and July 26, the crypto broke up from the pattern and soared 15%.
  • If Bitcoin closes the 24-hour trading session near its opening price, the crypto will print a gravestone doji candlestick, which could indicate lower prices will come again on Saturday and the crypto will continue to trade in the falling channel. If the crypto gains bullish momentum later on Friday and closes near its high-of-day price, Bitcoin will print a bullish Marubozu candlestick, which could indicate higher prices are in the cards for the weekend.
  • Bitcoin has resistance above at $25,772 and $29,321 and support below at $22,729 and $19,915.

See Also: 'Crypto Is Dead' Calls Overdone, Says Analyst As Bitcoin (BTC), Ethereum (ETH) Hold It Together

Photo: BBbirdZ via Shutterstock

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