What to Watch on Bitcoin, Ethereum, Dogecoin as Crypto Market Awaits Jackson Hole Symposium
Bitcoin BTC/USD traded flat during Wednesday’s 24-hour trading session, in line with S&P 500which closed 0.29% higher on Wednesday.
Ethereum ETH/USD and Dogecoin (CRYPTO DOGE) followed suit, trading flat until Tuesday’s close. The three cryptos have had several days of declining volume, indicating a lack of both buyers and sellers.
The lack of buyers and sellers is due to an ongoing lack of interest. Crypto traders and investors may be waiting to see how the general markets react as the Federal Reserve leads Jerome Powell takes the stage on Jackson Hole Symposium at 10 a.m. on Friday.
Powell’s speech is expected to focus on rising inflation, and traders and investors will be listening closely for hints about how the Fed plans to continue trying to tackle rising costs when it meets in September.
Powell’s tone is likely to ignite volatility in the markets, which will come with increasing volume. Crypto traders and investors will be watching closely to see which way the S&P 500 and top cryptos begin to move as the speech begins.
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The Bitcoin Chart: Bitcoin has been trading in a weak uptrend since August 20, with the last higher low formed during Tuesday’s trading session at $20,889 and the last confirmed higher high printed at the $21,795 mark on August 21.
The recent uptrend coupled with an 18% decline between August 15 and August 19 may have put the crypto into a bearish flag pattern on the daily chart. If the pattern is recognised, bearish traders will want to see the crypto drop through the lower rising trendline to the flag formation on higher than average volume to indicate that the pattern was recognised.
If bulls come in and drive the stock above the eight-day exponential moving average (EMA), the bear flag will be negated and a larger uptrend may form. The lower wicks of the Bitcoin daily candlesticks in the flag formation indicate that support exists within the flag pattern, which may indicate that the formation is not recognized.
Bitcoin has resistance above at $22,729 and $24,206 and support below at $21,313 and $19,915.
The Ethereum Chart: Ethereum’s chart looks almost identical to Bitcoin’s chart, with a recent uptrend forming the flag of a bear flag pattern. Ethereum’s possible bear flag pattern began with the bar forming between August 14 and August 20 and the flag forming in the days that have followed.
During Wednesday’s 24-hour trading session, Ethereum attempted to regain support at the eight-day EMA, but rejected the level. Like Bitcoin, the lower wicks on Ethereum’s candlesticks in the flag indicate support below.
The Dogecoin Chart: Dogecoin may also be working to complete a bearish flag pattern, with the bar formed between August 17 and August 29 and the flag formed over the days that have followed. Like Bitcoin and Ethereum, the lower wicks on Dogecoin’s chart indicate support below, which could help lift the flag.
During Wednesday’s trading session, Dogecoin printed an inside bar pattern, with all of the daily price action taking place within Tuesday’s range. Traders can look for Dogecoin to break up or down from Tuesday’s mother bar on higher than average volume later on Wednesday or Thursday to gauge future direction.
Dogecoin has resistance above at $0.075 and $0.083 and support below at $0.065 and $0.057.
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