Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) fell slightly during Friday’s 24-hour trading session, in line with the general market, which saw S&P 500 struggling to stay close to Thursday’s closing price.
Dogecoin (CRYPTO: DOGE) showed relative strength, emerging slightly in an attempt to reclaim the 50-day simple moving average (SMA) as support.
All three cryptos saw bearish price action during Thursday’s 24-hour trading session, with Bitcoin, Ethereum and Dogecoin plunging over 5%, 6% and 9% respectively, as fears that the rising US dollar could signal a recession gripped investors.
Consumer price index data for January is set to be released by Ministry of Labour on Tuesday and traders and investors will be watching closely to see if Federal Reserve do enough to lower inflation.
Until then, the market and the crypto sector are likely to remain choppy, with traders and investors worried about what the data might show.
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The Bitcoin and Ethereum Charts: Bitcoin and Ethereum negated their uptrends on Wednesday by printing lower highs and on Thursday confirmed downtrends by forming lower lows. Bitcoin’s recent low is at the $23,451 mark and Ethereum’s is at $1,699.
Neither Bitcoin nor Ethereum have shown evidence that their next lows have occurred, and traders and investors will be watching to see if the cryptos show any signs of reversal heading into the weekend. If Bitcoin and Ethereum close Friday’s session flat or at an intraday high, they will hit a doji or a hammer candlestick, respectively, which could indicate a bounce is coming on Saturday.
A golden cross formed on Bitcoin’s and Ethereum’s chart this week, which could give bullish traders more confidence going forward. A golden cross occurs when the 50-day simple moving average (SMA) crosses above the 200-day SMA and these levels could provide support if Bitcoin and Ethereum continue to fall further.
Bitcoin has resistance above at $22,729 and $24,206 and support below at $21,313 and $20,545.
Ethereum has resistance above at $1,564 and $1,717 and support below at $1,421.
The Dogecoin Chart: Like Bitcoin and Ethereum, Dogecoin confirmed a new downtrend on Thursday by printing below its most recent low after printing a lower high. Dogecoin’s most recent low was made on Wednesday at $0.093.
During Friday’s 24-hour trading session, Dogecoin traded in an inside bar pattern, with all price action taking place within Thursday’s range. The pattern leans bearish in this case because Dogecoin is in a downtrend and because the inside bar formed at the bottom of Thursday’s trading range.
Traders and investors can watch for Dogecoin breaking up or down from the mother line later on Friday or over the weekend to gauge future direction, otherwise the crypto may continue to chop sideways. If Dogecoin breaks bearishly, the crypto will likely find support at the 200-day SMA.
Dogecoin has resistance above at $0.083 and $0.091 and support below at $0.075 and at the 7-cent mark.
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Photo: Jiri Hera via Shutterstock
