Dogecoin Plunges, Bitcoin, Ethereum Firm: Analyst Says Watch Out For This Memecoin Pattern Before Friday Jobs Data

Dogecoin DOGE/USD dropped sharply Thursday evening, even as Bitcoin and Ethereum traded in the green, with the global cryptocurrency market cap rising 0.8% to $1 trillion at 9:05 p.m. EDT.

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The two largest coins remained resilient even as the Nasdaq closed 1.7% on Thursday and the S&P 500 declined 1.1%. 

U.S. stock futures traded slightly in the red at the time of writing as investors anticipated the October non-farm payrolls report. Wall Street consensus is for job creation of 220,000, down from 263,000 in the previous month.

On Thursday, The Bank of England raised the bank rate to 3% from 2.25% — its biggest hike since 1989 — following the U.S. Federal Reserve's move to increase rates by 75 bps.

“European central banks are nearing the end of their tightening cycles. The BOE delivered a dovish hike as they clearly signaled they shouldn't raise rates too far,” said Edward Moya, a senior market analyst with OANDA.

“The BOE’s outlook was the polar opposite from what we got from the Fed. The BOE said that we could see a two-year recession if the market follows the market curve. The BOE believes that markets are being a bit aggressive in pricing their rate path.”

On Bitcoin, Moya said, “Stocks are down significantly post-Fed yet Bitcoin continues to hover above the $20,000 level.  Bitcoin might eventually break here, but this resilience that is being displayed should show markets how confident long-term hodlers remain.”

Michaël van de Poppe said that his strategy for Bitcoin remains the same. He is looking for a sweep of the $20,000 mark for longs and ideally at the $19,700-$19,900 level.

“Otherwise I'd be looking for the flip of $20.4K for longs,” said the trader on Twitter.

Justin Bennett pointed to Dogecoin’s hourly chart and said it looked “interesting.” He warned in a tweet, “The apex comes into play before Friday NFPs though so be careful. 

In  the Twitter thread, the trader said that he’d feel “much better” about the bullish continuation pattern if “we didn't have that swing high on October 29th.”

Bennett clarified that he wasn’t saying anything bearish but this “just isn't an A+ bullish formation.”

Glassnode said that the Bitcoin seller exhaustion has recorded its lowest value since Nov. 2018. The cryptocurrency analysis company pointed out that the metric reaches such levels when volatility is low but realized losses on-chain are high.

“6-of-7 similar levels in the past preceded volatility to the upside,” said Glassnode.

Meanwhile, Polygon (MATIC) saw the highest amount of $100,000 whale transactions since February.

“A mid-October spike in [Polygon] holdings by 10m+ [MATIC] whales may have foreshadowed this,” said the market intelligence platform Santiment on Twitter.

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