Dogecoin (DOGE) was showing strength in comparison to most of the crypto industry during the 24-hour trading session. While it was up over 4% at one point yesterday, Bitcoin and Ethereum are down about 4% and 3% respectively. At the time of writing, all three are facing slight momentum gains. So what’s next? Here are the expectations of the two analysts…
What happened in the bitcoin and altcoin market?
Despite the dips in the two major cryptos, the industry showed strength compared to the general markets as the Fed raised interest rates by 0.75 percent on Wednesday. The S&P 500, which was trading down nearly 2.7 percent Friday afternoon, is down 5.6 percent since the market opened Wednesday. The market will be watching how the crypto industry behaves over the weekend for clues as to whether the stock market rally is on the cards Monday. Bitcoin has been trading in a sideways order since September 19.
Except for a brief dip below Wednesday’s low range on Monday, it’s forming an almost quadruple inside bar pattern. According to analyst Melanie Schaffer, who pointed out the chart, the inside bar pattern is neutral because Bitcoin does not show a clear trend direction. Traders can watch the crypto break or drop at higher-than-average volume from Monday’s main bar to gauge future direction over the weekend. Bitcoin has resistance above $19,915 and $21,313 and support below $17,580 and $16,000.
Also, according to another analyst, John Isige, Bitcoin price finds a base at $19,000. Various negative external forces curtailed the recovery from support at roughly $18,000 and forced a rejection near $19,500. If selling pressures stifle buyers at $18,500, we are likely to see $16,975 levels. The analyst points to $18,050 and $17,450 as other bearish levels.
What’s next for Ethereum (ETH)?
Similar to Bitcoin, Ethereum was attempting to form a double “inside bar” pattern on Friday, and all of Thursday and Friday’s price action was within Wednesday’s trading range. According to Schaffer, traders and investors can expect crypto to break out of the main bar at a higher-than-average volume.
A bounce is expected soon as Ethereum’s relative strength index (RSI) is measured at around 36 percent. A stock or crypto is oversold when its RSI approaches or reaches the 30% level. This could be a buy signal for technical traders. Ethereum’s RSI has outsold Bitcoin. Ethereum has resistance above $1,421.80 and $1,717.41 and support below $1,245 and $1,081.
Support and resistance levels for Dogecoin
Dogecoin broke out of an inside bar pattern bullish on Friday, confirming that the crypto is trading in an uptrend. Dogecoin’s most recent low was $0.056 on Sept. 21. It hit a higher high above $0.06 as the crypto started rising on Friday. Currently, the meme coin has resistance above $0.065 and $0.075 and support below the $0.057 and $0.05 marks.
41587
