Bitcoin, Ethereum and Dogecoin Setup into Weekend After FTX Mess, CPI Data, This Bullish Pattern – Bitcoin (BTC/USD), Ethereum (ETH/USD), Dogecoin (DOGE/USD)
Bitcoin BTC/USD fluctuated wildly between 9 and 10 after the news that the cryptocurrency platform FTX had filed for bankruptcy.
The volatility caused Ethereum ETH/USD and Dogecoin DOGE/USD to follow.
Between 09:00 and 09:30, Bitcoin plunged more than 5% before spending the following 30 minutes rebounding almost all the way up to the $17,267 level. Since then, Bitcoin has consolidated volatility on smaller time frames, settling into a tight range on the 15-minute chart.
Meanwhile, FTX founder and now former CEO Sam Bankman-Fried announced his resignation from the company. He will be replaced by John Ray IIIwho some reports say is the same person who oversaw Enron Corporation bankruptcy.
Read more about Sam Bankman-Fried’s FTX debacle here.
The news comes as a disappointment after data from the consumer price index (CPI) released by US Bureau of Labor Statistics on Thursday morning, inflation showed lower October, coming in at 7.7% against the estimate of 8%.
The news boosted the crypto sector and lifted Bitcoin from its lowest in almost two years. Ethereum and Dogecoin bounced back in unison during Thursday’s 24-hour trading session, rising 17% and 20% respectively from Wednesday’s lows.
Despite the decline during Friday’s 24-hour trade, Bitcoin, Ethereum and Dogecoin remain trading in an inside bar pattern on the daily chart, which leans slightly bullish as Friday’s candlesticks are pressed near the top of Thursday’s ranges.
Do you want direct analysis? Find me in the BZ Pro lounge! Click here for a free trial.
The Bitcoin Chart: Bitcoin printed a double inside bar on Friday, with all of the price action over the past 48 hours taking place within Wednesday’s trading range.
On smaller time frames, Bitcoin’s range has narrowed, indicating that a break up or down from Wednesday’s mother bar could come over the weekend.
There is a chance that Bitcoin could continue to trade inside bar patterns and eventually set up a bearish flag pattern, with the bar forming over Tuesday and Wednesday and the flag forming since then. If the pattern is recognized and Bitcoin breaks down from the flag on higher-than-average volume, the measured move is about 23%, suggesting that the crypto could fall towards $14,000.
If Bitcoin breaks out of Wednesday’s mother bar on higher-than-average volume, the potential bear flag will be negated as the crypto will regain the eight-day exponential moving average (EMA) as support. If that happens, Bitcoin may find the next resistance level at the 50-day simple moving average (SMA).
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 trades in a double inside bar pattern. Ethereum is also holding above an important descending trend line on the daily chart, which the crypto broke from October 25, which is bullish.
Ethereum worked to press a hammer candlestick on Friday, with a significant lower wick. This indicates that there are buyers below the $1,250 level and makes a break from the inside more likely.
Ethereum has resistance above at $1,412 and $1,717 and support below at $1,245 and $1,081.
The Dogecoin Chart: Dogecoin is trading in a simple internal bar pattern and is holding above the 200-day SMA, which the crypto regained on October 28. When a stock or crypto trades above the 200-day SMA, it is considered to be in a bull cycle.
If Dogecoin continues to trade above the 200-day over the weekend, the 50-day SMA will cross above the 200-day, causing a bullish golden cross to form. However, if the crypto is unable to break out significantly from inside the bar pattern, the eight-day EMA will cross below the 21-day EMA, which could add further pressure from above.
Dogecoin has resistance above at $0.083 and $0.099 and support below at $0.075 and $0.065.
See also: If You Had $10,000 Right Now, Would You Put It on Bitcoin, Ethereum, or Dogecoin
Photo: SvetlanaParnikova via Shutterstock
