Crypto Watch: Bitcoin, Dogecoin Enjoy Weekend Momentum As Ethereum Looks To Confirm New Trend
Bitcoin BTC/USD was popping up about 3% higher during Friday’s 24-hour trading session, in tandem with the general market, which saw the S&P 500 rising about 0.4% higher after Personal Consumption Expenditure (PCE) price index data showed inflation is continuing to slow.
Ethereum ETH/USD was spiking up nearly 2% higher, while Dogecoin DOGE/USD traded muted after spiking 3.67% on Thursday, when Bitcoin and Dogecoin consolidated.
While some have argued the crypto sector is a hedge for inflation, like gold is often believed to be, Bitcoin, Ethereum and gold have largely traded higher with the general market over the last few months. If the phenomena continue to hold true, traders and investors across stocks, gold and at least some cryptocurrencies could be in for a strong Santa Claus rally to end 2023.
From a technical analysis standpoint, Bitcoin, Ethereum and Dogecoin are reacting as expected, continuing to break higher from bullish chart patterns the cryptos have formed on their respective daily charts.
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The Bitcoin and Ethereum Charts: On Friday, Bitcoin and Ethereum were breaking up from double inside bar patterns, which leaned bullish for continuation from a technical standpoint. Golden crosses had also formed on both cryptos’ charts in October and November, which indicates Bitcoin and Ethereum are experiencing bull cycles.
While Bitcoin is trading in a confirmed uptrend, making a series of higher highs and higher lows, Ethereum remains trading mostly sideways without a confirmed trend in either direction. Bitcoin’s most recent higher low was formed on Nov. 27 at $36,715 and the most recent confirmed higher high was printed at the $38,480 mark on Wednesday.
Bullish traders want to see Bitcoin and Ethereum continue to hold above the eight-day exponential moving average, which the two cryptos recently regained as support. Bearish traders want to see the cryptos lose support at the 21-day EMA, which could accelerate downside pressure.
Bitcoin has resistance above at $39,600 and at $42,223 and support below at $38,105 and at $35,593.
On Friday, Dogecoin was working to print a shooting star candlestick, which could indicate the local top has occurred, and the crypto will retrace on Saturday. If that happens, Friday’s high-of-day will serve as the next higher high within the uptrend.
A golden cross took place on Dogecoin’s chart on Nov. 21, which, like Bitcoin and Ethereum, indicates the Shiba Inu-themed crypto is trading in a bull cycle. Also like Bitcoin and Ethereum, Dogecoin is above the eight-day EMA, which bullish traders want to see continue.
Dogecoin has resistance above at $0.083 and at 9 cents and support below at $0.075 and at the 7-cent mark.