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Bitcoin, Ethereum And Dogecoin Consolidate FTX Mess: Does This Crypto’s Golden Cross Predict 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 down on November 8 and 9.

The S&P 500 gapped to open Friday’s session before falling to trade mostly flat. The ETF has been consolidating below the 200-day simple moving average (SMA) since November 11, which Benzinga indicated was likely to happen that day.

Consolidation in the general market has leaked into the crypto sector, allowing many coins and tokens to trade sideways with 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 this 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:

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The Bitcoin Chart: Bitcoin has been consolidating with multiple inside bars since November 9, with all of the price action taking place within that days range. The consolidation occurred with falling volume, which is often followed by an influx in 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 tighter range. As a result, Bitcoin may settle into a triangle pattern on the daily chart and if the pattern becomes dominant, traders may look to see Bitcoin rise or break 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 tighter range and may be trading in a triangle pattern. Ethereum could be the first to break out of the pattern as the crypto will reach the apex of the triangle on Saturday.

Ethereum is trading above a long-term downtrend line, which the crypto bullish broke from on October 25. If Ethereum breaks out of the triangle, bullish traders will want to see Ethereum push a bullish reversal candlestick, such as a doji or hammer candlestick, above the trendline to indicate 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 followed Bitcoin and Ethereum in a similar tighter triangle pattern and is set to peak on Sunday. Dogecoin’s move also decreased in volume.

Interestingly, Dogecoin is showing relative strength compared to Bitcoin and Ethereum, as 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 indicates 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 $2 Billion Bitcoin From Its Proof of Reserves: What’s Going On?

Photo: Kanchanara on Unsplash

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