Bitcoin BTC/USD enjoyed a big bullish 24-hour trading session on Tuesday, in tandem with the general markets, which saw the S&P 500 rally 1.63% off the open.
Bitcoin closed that session up 4.4%, while Ethereum ETH/USD shot up 8.7% and Dogecoin DOGE/USD closed over 6% higher.
On Wednesday, premarket movement in the SPDR S&P 500 SPY indicated the general markets would open lower but the crypto sector didn’t appear effected.
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Bullish momentum looks to have gripped Bitcoin, pushing the crypto up an additional 2.3%. Ethereum was rising over 4% Wednesday and Dogecoin was surging over 6%.
The three cryptos have been stuck in sideways trading patterns for the last few weeks, as Benzinga pointed out Oct. 21. That long period of consolidation may be coming to an end because on Wednesday all three cryptos were attempting to break up from the pattern.
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The Bitcoin Chart: On Wednesday, Bitcoin was attempting to hold above the $20,479 level and if the crypto can close the 24-hour session on top of the area, the sideways pattern will be negated.
At the time of writing, Bitcoin was hovering at around $20,890.
The higher highs formed during Tuesday and Wednesday’s sessions confirmed an uptrend on Bitcoin’s chart, with the most recent higher low formed on Friday at $18,659. Eventually, Bitcoin will retrace to print it’s next higher low, which may provide traders who aren’t already in a position a solid entry.
The recent bullish price action has caused the eight-day exponential moving average (EMA) to cross above the 21-day EMA, which is bullish. When Bitcoin eventually retraces to the downside, traders can watch for a possible bullish reversal candlestick to print above the eight-day EMA.
Bitcoin has resistance above at $21,313 and $22,729 and support below at $19,915 and $17,580.
Like Bitcoin, Ethereum confirmed an uptrend Tuesday by printing a higher high. Ethereum’s most recent higher low was created on Oct. 21 t $1,254. Eventually Ethereum will retrace to print another higher low.
Ethereum is trading above the eight-day and 21-day EMAs and has also regained support at the 50-day simple moving average. This indicates longer-term sentiment has turned bullish.
Ethereum has resistance above at $1,717 and $1,957 and support below at $1,421 and $1,245.
Like Bitcoin and Ethereum, Dogecoin has confirmed an uptrend with the creation of higher highs. Dogecoin's most recent higher low was printed at the $0.057 mark on Oct. 21.
Dogecoin has resistance above at $0.075 and $0.083 and support below at $0.065 and $0.057.
It should be noted for each crypto that the formation of a lower low or a lower high will negate the current uptrends and act as a warning sign for bullish traders.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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