Bitcoin BTC/USD was leading the crypto sector higher during Friday’s 24-hour trading session, skyrocketing about 10% higher.
The bullish price action overnight on Thursday predicted a big move north for the general markets on Friday, which saw the S&P 500 rally about 1.7%.
By late afternoon, Bitcoin was holding strong near to its high-of-day. Ethereum ETH/USD and Dogecoin DOGE/USD initially soared higher but started to consolidate intraday, declining about 1.7% and 2.5%, respectively, off the high-of-day.
Bitcoin will eventually need to consolidate and may begin to do so over the weekend. If that happens, Ethereum and Dogecoin are likely to follow suit.
Below is a look at the three crypto charts:
The Bitcoin Chart: Bitcoin negated its short downtrend during Friday’s session by printing a higher high above the most recent lower high. An uptrend hasn’t yet been confirmed, as the crypto hasn’t printed a higher low above $18,527.
- When Bitcoin starts to consolidate, a higher low may form and traders and investors can watch for the crypto to print a bullish reversal candlestick, such as a doji or hammer candlestick, after the retracement.
- The second most likely scenario is that Bitcoin will print an inside bar pattern during Saturday’s trading session, which would lean bullish.
- Bitcoin has resistance above at $21,313 and $22,729 and support below at $19,915 and $17,580.
- The Ethereum Chart: Ethereum has been trading in an uptrend since Aug. 29, making a fairly consistent series of higher highs and higher lows. During Friday’s session, the crypto broke up bullishly from an inside bar pattern that had developed on Thursday and Friday, which was the most likely outcome because the crypto was trading higher before forming the pattern.
- Bullish traders want to see Ethereum consolidate further to print its next higher low within the uptrend, which could provide a solid entry point for those who aren’t already in a position. Bearish traders will want to see big bearish volume come in and drop Ethereum down below the most recent higher low to negate the uptrend.
- Ethereum has resistance above at $1,717.41 and $1,957.24 and support below at $1,421.80 and $1,245.
- Bullish traders want to see continued consolidation and then for Dogecoin to break up above the Sept. 6 high of $0.065, which would confirm an uptrend. Bearish traders want to see big bearish volume come in and drop the crypto down under the $0.057 mark, which would indicate the recent bullish price action was a bull trap and a downtrend will resume.
- Dogecoin has resistance above at $0.065 and $0.075 and support below at $0.06 and $0.057.
Photo via Shutterstock.
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