This weekend, all eyes are on Bitcoin BTC/USD and Ethereum ETH/USD as the Federal Reserve gears up to make its interest rate decision on July 25 and 26.
The movements in the cryptocurrency space garner increasing attention on weekends as they often offer clues about how the stock market may react when Wall Street resumes trading on Monday.
During Friday’s 24-hour trading session, Bitcoin and Ethereum were trading mostly flat, while Dogecoin DOGE/USD was leading the pack, popping up almost 9% higher at one point during the session.
Investors and traders are keeping a close watch on crypto trends because the Fed’s decision could cause some big reactions in both traditional and digital markets.
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The Bitcoin and Ethereum Charts: Bitcoin and Ethereum were working to print inside bar patterns on Friday, trading within Thursday’s 24-hour trading range. The sideways trading pattern indicates that consolidation is taking place, which is confirmed by the crypto’s low trading volume.
Both Ethereum and Dogecoin are trading in slight downtrends, making lower highs and lower lows but on Friday, the cryptos were working to print doji candlesticks, which may indicate the downtrend is coming to an end.
Bulls want to see big bullish volume come in over the weekend and push the cryptos up over Thursday’s high-of-day, which will negate the downtrends. Bears want to see big bearish volume knock the cryptos down under the 50-day simple moving average, which could accelerate a move lower.
Bitcoin has resistance above at $30,050 and at $31,418 and support below at $28,690 and $27,133.
The crypto’s pump higher was taking place on above-average volume, which suggests the bulls have regained both interest and control. If Dogecoin’s volume is sustained over the weekend, the crypto could break up through the 200-day SMA, which would throw Dogecoin into a bull cycle.
Bearish traders want to see Dogecoin continue to reject the 200-day and then for big bearish volume to come in and drop the stock under the 50-day SMA. If that happens, the crypto will confirm a new downtrend.
Dogecoin has resistance above at $0.075 and at $0.083 and support below at $0.069 and at $0.065.
Photo: Shutterstock
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