Ethereum and Dogecoin Propose a New Crypto Bull Cycle But Bitcoin Should Reclaim This Level: What to Watch – Bitcoin (BTC/USD)
bitcoin Bitcoin / US Dollar It rose more than 2% during the 24-hour trading session on Friday, and came close to ticking the 200-day simple moving average (SMA) in tandem with Standard & Poor’s 500And who was behaving similarly.
Ethereum ETH/USD It retraced the 200-day simple moving average on Thursday and Dogecoin emerged above the area on Monday.
The 200-day simple moving average is an important leading factor. Technical traders and investors consider stocks trading above the level on the daily chart to be in a bullish cycle, while stocks trading below the 200-day simple moving average are considered to be in a bearish cycle.
The 50-day SMA also plays an important role in technical analysis, especially when combined with the 200-day. When the 50-day SMA crosses below the 200-day SMA, a death cross occurs while when the 50-day SMA crosses above the 200-day, a bullish golden cross occurs.
While a golden cross occurred on the Dogecoin chart on November 10, the 50-day SMA is still trending below the 200-day on the Bitcoin and Ethereum charts.
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bitcoin chart: Bitcoin started trading in a bullish trend on December 30th and since then it has posted some higher highs and sharper lows on the daily chart. The recent higher low was formed on Jan 6 at $16,670 and the latest confirmed higher high was printed on the same day at $17,027.
Since then, the price of Bitcoin has risen by about 15%, without reversing to print a higher bottom. This indicates that a bearish retracement was likely on the horizon.
The cryptocurrency was also likely to trade lower or consolidate over the next few days because the Bitcoin Relative Strength Index (RSI) was measuring around 84%. When the RSI of a stock or cryptocurrency reaches or exceeds the 70% level, it becomes overbought, which can be a sell signal for technical traders.
A consolidation or recovery is likely to come when Bitcoin reaches the 200 day simple moving average on the daily chart as it is a strong support and resistance area.
Bitcoin has resistance above at $19,915 and $20,545 and support below at $18,835 and $17,580.
Ethereum chart: Ethereum again tested the 200 day simple moving average as support during the Friday session, and bounced slightly from the area. If Ethereum can stay above 200 for a series of days, the 50-day SMA will cross the 200-day level, giving bullish traders more confidence in the future.
Like Bitcoin, Ethereum has been trading in a strong uptrend, with the latest higher low formed on January 6 at $1,234.20 and the latest confirmed higher high created at $1,276.60 on the same day. Also, like Bitcoin, Ethereum has not printed a higher low in many trading sessions, which has made a bounce likely.
Ethereum has resistance above at $1,421.80 and $1,564.17 and support below at $1,308.89 and $1,231.38.
Dogecoin scheme: Dogecoin has been trading in an uptrend since December 30th and printed its latest higher low on Thursday at $0.0.73 and the latest high of the previous day at $0.079. On Friday, Dogecoin was trading higher but with below-average volumes, which indicates that a rebound may be in the cards.
Dogecoin was also printing a doji candlestick. When a doji candle is created in an uptrend, it can indicate that the temporary top is inside. Dogecoin may need to consolidate below the 50-day SMA before gaining enough strength to break above the level.
Unlike Bitcoin and Ethereum, Dogecoin’s RSI has not been overbought, indicating that the cryptocurrency has room to run further without becoming overbought.
Dogecoin has resistance above at $0.083 and $0.091 and support below at $0.075 and $0.07.
read the following: Dogecoin finally gets the support of Twitter’s “Cashtag” price index
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