Bitcoin, Ethereum and Dogecoin Consolidate FTX Root: Is This Crypto’s Golden Cross Predicting a Bull Cycle? – Bitcoin (BTC/USD), Ethereum (ETH/USD), Dogecoin (DOGE/USD)
Bitcoin BTC/USD, Ethereum ETH/USD and Dogecoin DOGE/USD traded slightly lower during Friday’s 24-hour trading session in continued consolidation after the FTX debacle and resulting bankruptcy sent the broader crypto sector tumbling on November 8 and 9.
The S&P 500 gapped up to open Friday’s session before falling to trading mostly flat. The ETF has been consolidating below its 200-day simple moving average (SMA) since Nov. 11, which Benzinga pointed out was likely to happen that day.
Consolidation in the general market spilled over into the crypto sector, allowing many coins and tokens to trade sideways on declining volume as the market prepares for its next move.
Traders and investors from both the crypto sector and the stock market will be watching Bitcoin and Ethereum closely over the weekend for clues as to how the S&P will behave next week.
Here’s a look at the three cryptos heading into the weekend:
See Shiba Inu and Baby Doge Coin charts here
The Bitcoin Chart: Bitcoin has been consolidating with multiple inside bars since November 9, with all price action taking place within this time frame. The consolidation has taken place with declining volume, which is often followed by an influx of volume to break a stock or crypto out of the pattern.
Bitcoin’s sideways consolidation has become less volatile and the crypto is trading in a tight range. Because of this, Bitcoin can settle into a triangle pattern on the daily chart and if the pattern becomes dominant, traders can look for Bitcoin to break up or down from the narrowing trend lines on higher than average volume before Monday.
Bitcoin has resistance above at $17,580 and $19,915 and support below at $16,000 and $15,000.
The Ethereum Chart: Like Bitcoin, Ethereum has consolidated in a sideways pattern, within a tightening range and can be traded into a triangle pattern. Ethereum could be the first to break out of the pattern as the crypto is set to reach the top of the triangle on Saturday.
Ethereum is trading above a long-term downtrend line, which the crypto broke up bullishly from October 25. If Ethereum breaks down from the triangle, bullish traders will see Ethereum print a bullish reversal candlestick, such as a doji or hammer candlestick, above the trendline to signal a possible bounce.
Ethereum has resistance above at $1,245 and $1,412 and support below at $1,081 and $997.
The Dogecoin Chart: Dogecoin has followed Bitcoin and Ethereum into a similar triangle pattern and is set to top on Sunday. Dogecoin’s move has also come on declining volume.
Interestingly, Dogecoin is showing relative strength compared to Bitcoin and Ethereum because on November 10, the crypto’s 50-day SMA crossed above the 200-day SMA, causing a golden cross to form. When a golden cross forms, it suggests that a bull cycle may be on the horizon.
Dogecoin has resistance above at $0.99 and 12 cents and support below at $0.083 and $0.075.
See also: Binance Just Moved $2B Bitcoin From Proof of Reserves: What’s Going On?
Photo: Kanchanara on Unsplash
