Bitcoin, Ethereum, Dogecoin Have Work to Do: What to Watch This Weekend – Bitcoin (BTC/USD), Ethereum (ETH/USD), Dogecoin (DOGE/USD)

by James · September 16, 2022

Bitcoin BTC/USD showed strength relative to the general market during Friday’s 24-hour trading session, despite trading slightly lower.

The S&P 500 edged lower and continued to slide nearly 2% lower in the regular session, in a continued bearish reaction to CPI data from the US Labor Department and anticipation of a sharp rate hike by the Federal Reserve on Wednesday.

Ethereum ETH/USD was slightly weaker, trading down over 3%, while Dogecoin DOGE/USD traded relatively flat.

Traders and investors from both the crypto sector and the stock market will be closely watching the top of the cryptocurrencies over the weekend for clues as to how the S&P may behave next week.

Despite crypto winter gripping the sector earlier this year, bullish short-term cycles in the crypto sector have often predicted similar actions in the general market.

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The Bitcoin Chart: Bitcoin attempted to break above the key psychological $20,000 level during Friday’s session, but failed and fell just below the area. However, the bears failed to release the crypto with momentum due to lower-than-average and declining volume, which could indicate that Bitcoin is running out of sellers.

Bitcoin may enter a consolidation phase, which could last over the weekend. The massive decline on Tuesday may have to drag on for a few more days before either bulls or bears regain interest.

Although the crypto negated a downtrend on September 9, an uptrend has yet to be confirmed as Bitcoin has not hit a higher low above $18,527. If Bitcoin prints a bullish reversal candlestick above the range, such as a doji or hammer candlestick, the crypto could be in for a bounce.

It should be noted that on the weekly chart, Bitcoin made a lower high, indicating that a long-term downtrend may be in the cards.

Bitcoin has resistance above at $19,915 and $21,313 and support below at $17,580 and $16,000.

The Ethereum Chart: Ethereum negated its uptrend on Thursday and confirmed a downtrend by printing both a lower high and a lower low. During Friday’s trading session, the crypto reacted bearishly to the new downtrend on the daily chart.

On Friday afternoon, the bulls tried to hold Ethereum above the $1,400 mark and the bears tried to push it down, albeit without success. Bullish traders will want to see the level hold and for Ethereum to print a bullish reversal candle above the area to indicate that a bounce to the upside is on the horizon.

Ethereum has resistance above at $1,717.41 and $1,957.24 and support below at $1,421.80 and $1,245.

The Dogecoin Chart: Dogecoin broke down bearishly from an inside bar pattern during Thursday’s session, and on Friday the crypto tried to print another inside bar pattern, but fell slightly below Thursday’s intraday low, which may have negated the formation.

As with Bitcoin, the bulls and bears are in a fierce battle to break Dogecoin up or down from the psychologically important 6-cent mark. If the crypto is unable to regain the level as support, bullish traders will see the $0.057 level holding for the crypto to print a double bottom pattern in the area.