A Look At Bitcoin, Ethereum And Dogecoin As The Market Digests Big Tech Earnings

Zinger Key Points
  • Bitcoin, Ethereum and Dogecoin are all trading in uptrends, making a series of higher highs and higher lows.
  • Dogecoin is trading in a triple inside bar pattern.

Bitcoin BTC/USD was trading mostly flat during Friday’s 24-hour trading session, holding strong compared to the S&P 500, which was declining about 1% in consolidation.

Ethereum ETH/USD and Dogecoin DOGE/USD were also trading near their closing price on Thursday, in tandem with the apex crypto.

On Thursday, Bitcoin and Ethereum followed the general market higher, breaking up above the previous day’s high before falling to close flat.

The S&P 500 advanced 1.47% into the biggest after-hours earnings session of the season but began to decline after Apple and Alphabet printed results that came in below analyst estimates and Amazon posted mixed results, which also weighed on the crypto sector.

Despite Bitcoin, Ethereum and Dogecoin trading stubbornly near to flat, the three cryptos are trading in slight uptrends, which is bullish although traders, especially in the crypto sector, often enjoy a higher level of volatility.

For volatility to increase, higher volume will need to enter into the crypto sector and if that happens over this weekend, the directional movement in Bitcoin, Ethereum and Dogecoin could predict how the general market behaves next week.

Want direct analysis? Find me in the BZ Pro lounge! Click here for a free trial.

The Bitcoin and Ethereum Charts: Bitcoin and Ethereum reversed into uptrends on Dec. 19 and have been making a consistent series of higher highs and higher lows. Bitcoin’s most recent higher low was formed on Jan. 30 and $22,500 and the most recent higher high was printed at the $24,262 mark on Thursday; Ethereum’s most recent higher high was printed at the $1,534 mark on Jan. 30 and the most recent higher high was created on Thursday at $1,714.

During Friday’s 24-hour trading session, Bitcoin and Ethereum tested the eight-day exponential moving average (EMA) as support and held above the level, although Bitcoin was coming close to falling under the eight-day EMA during the afternoon. If either crypto decline below the area, it could be a warning sign for short-term bullish traders.

For Bitcoin’s or Ethereum’s uptrend to be negated, the cryptos will either have to print a lower low or a lower high. If the uptrend continues, it’s likely Bitcoin and Ethereum will spike up to print a higher high over the weekend.

The second most likely scenario is that the cryptos begin to consolidate sideways, possibly printing inside bar patterns.

Bitcoin has resistance above at $24,206 and $25,772 and support below at $22,729 and $21,313.

Ethereum has resistance above at $1,717 and $1,957 and support below at $1,564 and $1,421.

Dogecoin is trading in a triple inside bar pattern, with all of the last three trading day’s price action taking place within Tuesday’s trading range. The pattern leans slightly bullish in this case because Dogecoin is trading in an uptrend but traders can watch for the crypto to break up or down from the mother bar on higher-than-average volume to determine future direction.

Dogecoin has resistance above at $0.099 and at 12 cents and support below at $0.091 and $0.083.

Read Next: Jack Dorsey's Damus Not Welcome In China: Is Bitcoin Lightning Network To Blame?

Photo: Ground Picture via Shutterstock

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: CryptocurrencyLong IdeasShort IdeasTechnicalsTop StoriesMarketsTrading Ideas
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...