Ethereum and Dogecoin Suggest New Crypto Bull Cycle But Bitcoin Should Retest This Level: What to Watch – Bitcoin (BTC/USD)

Bitcoin BTC/USD It was up more than 2% during Friday’s 24-hour trading session, coming close to tagging the 200-day simple moving average (SMA). S&P 500, who was behaving like,

Ethereum ETH/USD The 200-day SMA was retested on Thursday and Dogecoin broke out above the area on Monday.

The 200-day SMA is an important bellwether. Technical traders and investors consider a stock trading above the level on the daily chart to be in a bull cycle, while a stock trading below the 200-day SMA is considered to be in a bear cycle.

The 50-day SMA also plays an important role in technical analysis, especially when combined with the 200-day. A death cross occurs when the 50-day SMA crosses below the 200-day SMA, while a bullish golden cross occurs when the 50-day SMA crosses above the 200-day.

While a golden cross occurred on the charts of Dogecoin on November 10, the 50-day SMA is trending below the 200-day low on the charts of Bitcoin and Ethereum.

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bitcoin chart: Bitcoin started trading in an uptrend on December 30 and has since printed some higher highs and higher lows on the daily chart. The most recent higher low was formed on January 6th at $16,670 and the most recent confirmed higher high was printed on the same day at $17.027.

Since then, bitcoin has risen about 15% more, without printing a higher low. This indicates that a downside retracement is likely on the horizon.

The crypto was also likely to move lower or consolidate over the next few days as Bitcoin’s Relative Strength Index (RSI) was measuring around 84%. When the RSI of a stock or crypto reaches or exceeds the 70% level, it becomes overbought, which can be a sell signal for technical traders.

A consolidation or retracement was likely to occur when the 200-day SMA was reached on the bitcoin daily chart as this is a strong area of ​​support and resistance.

Bitcoin faced resistance above $19,915 and $20,545 and support below $18,835 and $17,580.

Ethereum Chart: Ethereum tested the 200-day SMA as support during the Friday session and bounced slightly above the area. If Ethereum can hold above the 200-day for several more days, the 50-day SMA will cross above the 200-day, giving traders more confidence going forward.

Like bitcoin, Ethereum is trading in a strong uptrend, with the most recent low made on January 6 at $1,234.20 and the most recent high confirmed on the same day at $1,276.60. Furthermore, like bitcoin, Ethereum did not print higher lows in several trading sessions, making a retracement likely.

Ethereum faces resistance above $1,421.80 and $1,564.17, and support lies below $1,308.89 and $1,231.38.

Dogecoin Chart: Dogecoin had been trading in an uptrend since December 30 and its most recent high low was printed at $0.0.73 on Thursday and its most recent high the day before at $0.079. On Friday, Dogecoin was trading higher, but in lower-than-average volume, which suggested a retracement could be in the cards.

Dogecoin was also in the works to print a doji candlestick. When a doji candlestick is formed in an uptrend it can indicate that a temporary top is underway. Dogecoin may need to consolidate under the 50-day SMA before gaining enough strength to break above the level.

Unlike bitcoin and ethereum, Dogecoin’s RSI was not in the overbought zone, which suggested that the crypto had room to move higher without overbought.

Dogecoin faced resistance above $0.083 and $0.091, and support below $0.075 and $0.07.

Read next: Dogecoin Finally Receives Twitter ‘Cashtag’ Price Index Support

photo: Carbonaterol via shutterstock

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