Bitcoin, Ethereum, Dogecoin Must Climb Above This Key Level To Avoid Feeding The Bears

Bitcoin BTC/USD, Ethereum ETH/USD and Dogecoin DOGE/USD have all settled into bearish flag patterns on the daily chart. The bear flag pattern is created with a steep drop lower forming the pole, which is then followed by a consolidation pattern that brings the stock or crypto higher between a channel with parallel lines or a tightening triangle.

• For bullish traders, the "trend is your friend" (until it's not) and the stock or crypto may continue to rise upwards within the following channel for a short period of time. Aggressive traders may decide to purchase the stock or crypto at the lower trendline and exit the trade at the higher trendline.
• Bearish traders will want to watch for a break-down from the lower descending trendline of the flag formation, on high volume, for an entry. When a stock or crypto breaks down from a bear flag pattern, the measured move lower is equal to the length of the pole and should be added to the highest price within the flag.

A bear flag is negated when a stock or crypto regains the eight-day exponential moving average (EMA) as support or if the flag rises more than 50% up the length of the pole.

See Also: Is It Getting More Profitable To Short Dogecoin Than Going Long Based On Elon Musk's Tweets?

The Bitcoin Chart: Bitcoin is currently trading in a short-term uptrend and has been making a consistent series of higher highs and higher lows since Jan. 24 when the crypto bounced up from the $32,933.33 level.

• The uptrend, paired with the 21% drop between Jan. 20 and Jan. 22 has settled the crypto into a possible bear flag pattern.
• On Saturday, Bitcoin was rejecting the eight-day EMA, which is holding the crypto back from negating the bear flag pattern.
• Bitcoin has resistance above at $38.105 and $39,600 and support below at $35,593.22 and $32,200.

Want direct analysis? Find me in the BZ Pro lounge! Click here for a free trial.

The Ethereum Chart: Like Bitcoin, Ethereum has been trading in an uptrend since Jan. 24 by making a series of higher highs and higher lows.

• The uptrend paired with the 34% drop between Jan. 20 and Jan. 24 has settled Ethereum into a possible bear flag pattern.
• On Saturday, Ethereum was attempting to negate the flag by regaining support at the eight-day EMA.
• Ethereum has resistance above at $2,609.02 and $2,890 and support below at $2,461.63 and $2,317.64.

The Dogecoin Chart: Dogecoin’s chart is similar to both Bitcoin and Ethereum in that it has been trading in an uptrend since Jan. 22 and paired with the 35% drop between Jan. 16 and Jan. 22, it has settled into a bear flag pattern.

• The crypto will need to regain the eight-day EMA to negate the pattern, but lower-than-average volume is holding it back from doing so.
• If Dogecoin falls below the lower ascending trendline of the flag formation on higher-than-average volume, the bear flag will be confirmed.
• Dogecoin has resistance above at $0.144 and 16 cents and support below at 12 cents and the 10-cent psychological level.