Bitcoin has regained $37,000, pulling Ethereum higher while Dogecoin consolidates. Let’s take a look at the crypto market heading into the weekend.
Bitcoin (BTC) has risen almost 2% during Friday’s 24-hour trading session, reclaiming the $37,000 mark. The crypto’s upward climb continues as hopes grow for the approval of a spot Bitcoin ETF by the U.S. Security and Exchange Commission. Analysts are becoming more bullish on the likelihood of the approval coming soon.
On Thursday, Ethereum (ETH/USD) significantly outpaced Bitcoin, surging about 13% compared to Bitcoin’s 3.24% increase. However, on Friday, both Bitcoin and Ethereum were trading in slightly opposite directions, with both cryptos consolidating.
While Bitcoin and Ethereum have seen significant gains recently, Dogecoin (DOGE/USD) has been consolidating mostly sideways above the 200-day simple moving average (SMA), which is considered healthy. If Bitcoin and Ethereum continue to trend higher following this consolidation period, it is likely that Dogecoin will break out bullishly from its horizontal pattern.
The Bitcoin and Ethereum charts show that both cryptos are trading slightly higher and lower, respectively, on Friday. They have formed inside bar patterns on declining volume, which lean bullish since the inside bars are forming at the top of the mother bars, and both cryptos are in uptrends.
The sideways consolidation is helping Bitcoin and Ethereum’s eight-day exponential moving averages (EMAs) catch up to their prices. If these two top cryptocurrencies continue to trade sideways over the weekend, it would also help lower their relative strength index (RSI), as both Bitcoin and Ethereum are currently in overbought territory.
On Bitcoin’s chart, a golden cross formed on October 29. However, on Ethereum’s chart, the 50-day SMA is trending below the 200-day SMA. If Ethereum continues to trend above the 200-day SMA, the 50-day SMA will eventually cross above the 200-day SMA, forming a golden cross and giving bullish traders more confidence.
Bitcoin has resistance levels above at $38,105 and $39,600, with support levels below at $35,593 and $31,862.
Ethereum has resistance levels above at $2,150 and $2,317, with support levels below at $2,020 and $1,937.
Unlike Bitcoin and Ethereum, which surged on Thursday, Dogecoin experienced high volatility, initially losing 8% before climbing over 3% and finally closing the session slightly lower. Dogecoin has been trading mostly sideways between about 7 cents and $0.075 since Sunday, which has brought the crypto’s RSI down to the 64% mark.
Dogecoin’s horizontal consolidation has taken place above the 200-day SMA, as expected after a stock or crypto regains that level. Similar to Ethereum, if Dogecoin continues to trade above the 200-day SMA, the 50-day SMA will cross above the 200-day SMA, forming a golden cross.
Bullish traders hope to see Dogecoin continue to trade sideways and then witness a surge in bullish volume that breaks the crypto above Thursday’s high-of-day. On the other hand, bearish traders want to see a drop in bearish volume that brings Dogecoin back under the 200-day SMA.
Dogecoin has resistance levels above at $0.075 and $0.083, with support levels below at $0.069 and $0.065.
Please note that this article is for informational purposes only and does not constitute investment advice.
