Did Bitcoin, Ethereum and Dogecoin scare you? A Look at the Charts Ahead of Marathon Digital Q3 Earnings – Bitcoin (BTC/USD), Ethereum (ETH/USD), Dogecoin (DOGE/USD)

by James · November 8, 2022

Bitcoin BTC/USD plunged about 5% between 9:00 p.m. and midnight on Monday, and on Tuesday morning, the apex crypto tried to bounce back from $19,235 on the day.

Ethereum ETH/USD and Dogecoin DOGE/USD slipped in tandem, losing over 9% and 14% respectively, before starting to recover.

On Sunday, Binance CEO and founder Changpeng Zhao said he planned to liquidate all of the exchange’s remaining FTT tokens, sending shockwaves through the cryptocurrency sector. FTT is the original crypto token of Sam Bankman-Frieds FTX trading platform, and as of Sunday, Binance held 23 million tokens.

A bullish day in the general markets, with the S&P 500 climbing 1%, helped pull Bitcoin, Ethereum and Dogecoin off their lows. As of midday Tuesday, all three cryptos were working to print hammer candlesticks, indicating that a bounce could be imminent.

Marathon Digital Holdings, Inc MARA is set to print results for the third quarter after the market closes. The stock has not enjoyed the recent bullish cycle in the crypto sector, falling over 27% between October 25 and Tuesday.

The cryptocurrency miner hasn’t posted earnings since May 2021. For the third quarter, analysts on average expect Marathon to report EPS of 35 cents on revenue of 23.53 million.

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The Bitcoin Chart: Bitcoin reversed an uptrend on October 13, but negated the trend on Tuesday by printing a lower low below the November 3 high low of $20,032. Although the uptrend has been negated, a downtrend has not been confirmed with the formation of a lower high, which could indicate that Tuesday’s steep decline was a bear trap.

As Bitcoin bounced back, the crypto regained support at the 50-day simple moving average (SMA), indicating that long-term sentiment remains bullish. Traders will want to see Bitcoin regain the eight-day exponential moving average (EMA) later on Tuesday or during Wednesday’s 24-hour trading session for more confidence going forward.

Bitcoin has resistance above at $20,545 and $21,313 and support below at $19,915 and $17,580.

The Ethereum Chart: Like Bitcoin, Ethereum negated its uptrend on Tuesday but has not confirmed a downtrend. As Ethereum plunged to the day’s low at the $1,424 mark, the crypto found support at the 50-day SMA and bounced sharply from the area.

Since November 4, Ethereum has been trying to regain support at the 200-day SMA. The level is an important bell indicator, used to determine whether a security is in a bull or bear market.

If the crypto can regain the 200-day and trade above the range for a period, the 50-day SMA will cross above the 200-day, which will lead to the formation of a golden cross.

Ethereum has resistance above at $1,717 and $1,957 and support below at $1,421 and $1,245.

The Dogecoin Chart: Dogecoin has been trending lower since November 1, falling 32% from its high of $0.158. The decline likely came after a 150% rally that started on October 25, which was prompted by Elon Musk’s acquisition of Twitter.

Dogecoin’s decline has taken place on decreasing volume, indicating that consolidation is occurring. The retracement has helped bring Dogecoin’s relative strength index below the 60% level, which is a positive sign for the bulls.

Dogecoin has been trading above the 200-day SMA since October 28, causing the 50-day SMA to turn sharply northward. A golden cross is likely to appear on Dogecoin’s chart in the coming days, giving bullish traders more confidence going forward.