A look at Bitcoin, Ethereum and Dogecoin over the weekend, ahead of key data next week
Bitcoin BTC/USD stabilized to trade mostly during Friday's 24-hour trading session after attempting to break above Thursday's daily high and failing to break. failed to gain momentum.
The move came in tandem with the S&P 500, which moved from its daily high to close in Thursday's range. Ethereum ETH/USD and Dogecoin DOGE/USD followed suit, forming inside bar patterns on below average volume.
On December 13, the US Department of Labor will release Consumer Price Index data, which the Federal Reserve will use to guide its decision on the level of interest rate hikes. interest the next day. Both numbers are likely to influence the direction of the general market and the crypto sector, which may mean that until then, Bitcoin, Ethereum, and Dogecoin will trade sideways.
Here's a look at the three cryptos headed for events.
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Bitcoin and Ethereum Charts: Bitcoin and Ethereum have been trading in tandem, mostly sideways since December 1. Overall, the trading volume on both cryptos has decreased, indicating that a consolidation is underway. .
The decrease in volume is often followed by a strong increase in volume, which is likely to push Bitcoin and Ethereum up or down from the sideways pattern. This big increase in volume could come in reaction to CPI data or the Fed's decision next week. Over the weekend, traders and investors will be watching to see if Bitcoin and Ethereum show any signs of predicting the stock market's reaction to next week's numbers. If the reaction is bullish, traders will want to see both coins move higher to regain support at the 50-day simple moving average (SMA). Bitcoin has resistance above $17,580 and $19,915 and support below $16,000 and $15,000. Ethereum has resistance above $1,412 and $1,717 and support below at $1,245 and $1,081.The Bitcoin chart:
The Ethereum Chart:The Dogecoin Chart: Dogecoin has recently shown slightly more volatility than Bitcoin and Ethereum, trading in a downtrend between parallel trendlines. The price action has caused Dogecoin to form a falling channel pattern, which is considered bearish in the short term but bullish down the road.
If Dogecoin reacts bullishly to next week's events and breaks the upper descending trendline of the channel, a longer-term uptrend could be on the horizon. If the crypto reacts bearishly, Dogecoin could lose its support at the 50-day SMA, which could indicate that a larger retracement is on the horizon. Like Bitcoin and Ethereum, Dogecoin's trading volume has been declining. In the case of Dogecoin, the drop in volume is bullish because, coupled with lower trend prices, it indicates that downside pressure is easing. Dogecoin has resistance above $0.10 and 12 cents and support below at $0.091 and $0.083.Read more: Dogecoin Hackathon Heads to the US in 2023 – Excitement Soars as Users Say "To The Moon"
Photo: Kanchanara on Unsplash
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Bitcoin BTC/USD stabilized to trade mostly during Friday's 24-hour trading session after attempting to break above Thursday's daily high and failing to break. failed to gain momentum.
The move came in tandem with the S&P 500, which moved from its daily high to close in Thursday's range. Ethereum ETH/USD and Dogecoin DOGE/USD followed suit, forming inside bar patterns on below average volume.
On December 13, the US Department of Labor will release Consumer Price Index data, which the Federal Reserve will use to guide its decision on the level of interest rate hikes. interest the next day. Both numbers are likely to influence the direction of the general market and the crypto sector, which may mean that until then, Bitcoin, Ethereum, and Dogecoin will trade sideways.
Here's a look at the three cryptos headed for events.
Want direct analysis? Meet me in the BZ Pro lounge! Click here for a free trial.
Bitcoin and Ethereum Charts: Bitcoin and Ethereum have been trading in tandem, mostly sideways since December 1. Overall, the trading volume on both cryptos has decreased, indicating that a consolidation is underway. .
The decrease in volume is often followed by a strong increase in volume, which is likely to push Bitcoin and Ethereum up or down from the sideways pattern. This big increase in volume could come in reaction to CPI data or the Fed's decision next week. Over the weekend, traders and investors will be watching to see if Bitcoin and Ethereum show any signs of predicting the stock market's reaction to next week's numbers. If the reaction is bullish, traders will want to see both coins move higher to regain support at the 50-day simple moving average (SMA). Bitcoin has resistance above $17,580 and $19,915 and support below $16,000 and $15,000. Ethereum has resistance above $1,412 and $1,717 and support below at $1,245 and $1,081.The Bitcoin chart:
The Ethereum Chart:The Dogecoin Chart: Dogecoin has recently shown slightly more volatility than Bitcoin and Ethereum, trading in a downtrend between parallel trendlines. The price action has caused Dogecoin to form a falling channel pattern, which is considered bearish in the short term but bullish down the road.
If Dogecoin reacts bullishly to next week's events and breaks the upper descending trendline of the channel, a longer-term uptrend could be on the horizon. If the crypto reacts bearishly, Dogecoin could lose its support at the 50-day SMA, which could indicate that a larger retracement is on the horizon. Like Bitcoin and Ethereum, Dogecoin's trading volume has been declining. In the case of Dogecoin, the drop in volume is bullish because, coupled with lower trend prices, it indicates that downside pressure is easing. Dogecoin has resistance above $0.10 and 12 cents and support below at $0.091 and $0.083.Read more: Dogecoin Hackathon Heads to the US in 2023 – Excitement Soars as Users Say "To The Moon"
Photo: Kanchanara on Unsplash
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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