Bitcoin, Ethereum And Dogecoin Consolidate FTX Mess: Does This Crypto’s Golden Cross Predict A Bull Cycle?
3 min readBitcoin BTC/USD , Ethereum ETH/USD and Dogecoin DOGE/USD were trading slightly lower during Fridays 24-hour trading sessionin continued consolidation after the FTX debacle and resulting bankruptcy sent the wider crypto sector plunging on Nov. 8 and Nov. 9.
The S&P 500 gapped up to open Fridays session before falling to trade mostly flat. The ETF has been consolidating under the 200-day simple moving average (SMA) since Nov. 11, which Benzinga pointed out was likely to happen that day.
Consolidation in the general market leaked over in the crypto sector, allowing many coins and tokens to trade sideways on decreasing volumeas the market prepares for its next move.
Traders and investors of 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.
Heres a look at the three cryptos into the weekend:
See Shiba Inu and Baby Doge Coin charts here
The Bitcoin Chart: Bitcoin has been consolidating with multiple inside bars since Nov. 9, with all of the price action taking place within that days range. The consolidation has taken place on decreasing volume, which is often followed by an influx in volume to break a stock or crypto out of the pattern.
Bitcoins sideways consolidation has been becoming less volatile and the crypto is trading in a tightening range. Due to this, Bitcoin may be settling into a triangle pattern on the daily chart and if the pattern becomes dominant, traders can watch for Bitcoin to break up or down from the narrowing trendlines 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 been consolidating in a sideways pattern,within a tightening range and may be trading into a triangle pattern. Ethereum could be the first to break out from the pattern because the crypto is set to reach the apex of the triangle on Saturday.
Ethereum is trading above a long-term downward-sloping trendline, which the crypto broke up bullishly from on Oct. 25. If Ethereum breaks down from the triangle, bullish traders will want to 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 been following Bitcoin and Ethereum into a similar tightening triangle pattern and is set to reach its apex on Sunday. Dogecoins move has also come on decreasing volume.
Interestingly, Dogecoin is showing relative strength in comparison to Bitcoin and Ethereum because on Nov. 10, the cryptos 50-day SMA crossed above the 200-day SMA, which caused a golden cross to form. When a golden cross forms it suggests a bull cycle could 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 Its Proof Of Reserves: What's Going On?
Photo:Kanchanara on Unsplash
