What to Watch in Bitcoin, Ethereum and Dogecoin Over the Weekend – Bitcoin (BTC/USD), Ethereum (ETH/USD), Dogecoin (DOGE/USD)
Bitcoin BTC/USD fell more than 3% lower during Friday’s 24-hour trading session in line with S&P 500which suffered a fourth straight bearish day with sharply falling prices.
Ethereum ETH/USD and Dogecoin DOGE/USD was weaker than Bitcoin, falling around 5% below Thursday’s close.
The downturn in the general market and the crypto sector came after the Federal Reserve Chair Jerome Powell crashed the Wall Street party on Wednesday with predictions that inflation would remain stubbornly high in 2023 and unemployment would rise to more than 4%.
Ahead of the gloomy outlook, the market rallied on weaker-than-expected consumer price index data that showed inflation ticking lower in November, pulling Bitcoin and Ethereum higher. Dogecoin didn’t join the party, falling more than 24% since November 30.
Do you want direct analysis? Find me in the BZ Pro lounge! Click here for a free trial.
The Bitcoin Chart: Bitcoin’s slide on Thursday saw the stock fall back into a sideways trading pattern, which had kept the crypto between $16,000 and $17,580 since November 11. Friday’s plunge on continued bearish momentum saw Bitcoin lose support on the eight-day and 21-day exponential moving averages, which were bearish at least in the short term.
Some mild support near the $16,800 pattern developed over the past month, and bullish traders would like to see Bitcoin close Friday’s session above this level. If that happens, Bitcoin could consolidate sideways in the upper area of the sideways channel over the weekend.
Bitcoin has resistance above at $17,580 and $19,915 and support below at $16,797 and $16,000.
The Ethereum Chart: Ethereum broke out of a sideways channel on Friday, negating its current uptrend by printing a lower low. For a downtrend to confirm, Ethereum must eventually bounce to print at least a lower top on the 24-hour chart.
Unlike Bitcoin, which was trading on declining volume, Ethereum’s drop came on increasing volume, which was a bad sign for the bulls. Eventually, Ethereum will likely enter a consolidation phase and start trading sideways. If that happens, bullish traders will see the cryptograph hit a series of candlesticks with lower wicks to indicate that accumulation may be taking place.
Ethereum has resistance above at $1,245 and $1,412 and support below at $1,081 and $997.
The Dogecoin Chart: Dogecoin’s downtrend had taken place between two parallel lines, which put the crypto into a falling channel pattern on the 24-hour chart. The pattern is considered bearish until a stock or crypto breaks above the upper descending trend line of the channel on higher than average volume.
On Friday, Dogecoin tested the lower trend line of the channel and bounced off the level. If Dogecoin continued to trend lower within the channel, bullish traders will see the crypto bounce off the 200-day SMA if Dogecoin returns to that area.
Dogecoin has resistance above at $0.083 and $0.091 and support below at $0.075 and $0.07.
Read Next: Floki Inu (FLOKI) Rises 11% Even as Dogecoin (DOGE), Shiba Inu (SHIB) Slide
Photo: Shutterstock
