Bitcoin BTC/USD was declining just 1% lower on Friday in bullish opposition to the S&P 500, which rejected an important psychological level at $4,000 and slid about 0.08%.
Ethereum ETH/USD was initially leading the crypto sector, spiking over 4% higher but began to retrace intraday to trade mostly flat. Dogecoin DOGE/USD fell slightly more modestly in tandem with Bitcoin, declining about 1.6%.
The three cryptos, although not enjoying a bullish cycle, have shown strength compared to the general markets recently. Ethereum has been the most bullish, rising over 11% since Aug. 29. Bitcoin and Dogecoin have been trading mostly sideways, both near important support and resistance levels.
The behavior of Bitcoin and Ethereum, specifically, will be watched closely over this weekend by both crypto traders and those who play the stock market because when the general markets are closed, the apex crypto’s movements sometimes indicate the possible direction the stock market will move.
With the stock market being closed Monday for Labor Day, the crypto sector will have three 24-hour trading periods to flash signals.
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The Bitcoin Chart: Beginning Aug. 28, Bitcoin made a series of lower highs and higher lows, which has settled the crypto into a symmetrical triangle pattern on the daily chart. Bitcoin is set to meet the apex of the triangle on Sept. 6 and traders and investors can watch for the crypto to break up or down from the triangle on higher-than-average volume to gauge future direction.
- During Friday’s 24-hour session, Bitcoin attempted to break both up and down from the triangle but was unable to break the upper resistance or the lower support. The crypto looks to be working to print a doji candlestick, which in this case indicates indecision because the bulls and bears are both equally in control.
- Bitcoin has resistance above at $21,313 and $22,729 and support below at $19,915 and $17,580.
The Ethereum Chart: Ethereum began trading in a rising wedge pattern on Aug. 29, making a series of higher highs and higher lows with the pattern’s uptrend. The pattern is bullish in the short-term, but often becomes bearish before a stock or crypto meets the apex. Ethereum will meet the apex of the wedge on Sept. 6, the same day that Bitcoin will meet the apex of its triangle.
- If Ethereum eventually breaks down from the wedge but on lower-than-average volume, it may indicate the rising wedge is not a recognized pattern. In that case, bullish traders will want to see if Ethereum bounces up from the $1,512.83 level, to indicate the uptrend will continue.
- Ethereum has resistance above at $1,717.41 and $1,957.24 and support below at $1,421.80 and $1,245.
The Dogecoin Chart: Unlike Bitcoin and Ethereum, Dogecoin hasn’t developed any strong visible patterns on the daily chart. Dogecoin has been consolidating sideways since Aug. 27 on declining volume, which indicates both a lack of direction and a lack of interest from traders and investors.
- Very slight exaggerated bullish divergency may be developing on Dogecoin’s chart, however, which could indicate bullish momentum is on the horizon. Bullish divergency occurs when a stock’s relative strength index makes a series of higher lows and the stock or crypto trades flat.
- Dogecoin has resistance above at $0.065 and $0.075 and support below at $0.06 and $0.057.
See Also: © 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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