Dogecoin Shows Strength As Bitcoin, Ethereum Struggle To Gain Momentum: A Look At The Cryptos Into The Weekend

Bitcoin, Ethereum, and Dogecoin experienced notable price movements during Friday’s 24-hour trading session. Bitcoin and Ethereum attempted to break up from an inside bar pattern, while Dogecoin showed comparative strength by breaking up from its inside bar pattern and holding above Wednesday’s range.

An inside bar pattern is a period of consolidation that is typically followed by a continuation move in the direction of the current trend. This pattern is more significant on larger time frames, such as four-hour charts or larger. It consists of a mother bar (the first candlestick in the pattern) followed by one or more subsequent candles that are completely inside the range of the mother bar.

A double or triple inside bar pattern can be even more powerful than a single inside bar. Traders look for high volume after the break of an inside bar pattern to confirm its validity.

Turning to the Bitcoin and Ethereum charts, both cryptocurrencies formed inside bar patterns on Wednesday and Thursday. On Friday, they attempted to break up from these patterns but faced heavy resistance above. The lack of volume contributed to weakness in the move, suggesting that further consolidation may be needed, especially on smaller time frames.

The consolidation phase since November 10 has brought the relative strength index (RSI) of Bitcoin and Ethereum down from overbought levels to below 70%. This indicates that there is potential for further northward movement if bullish volume continues to support these cryptocurrencies.

Bullish traders are hoping for a strong increase in bullish volume to push Bitcoin and Ethereum above Friday’s high-of-day, which could accelerate upside momentum. On the other hand, bearish traders are looking for significant bearish volume that would drop Bitcoin and Ethereum below the eight-day exponential moving average (EMA), potentially negating the current upward trend.

Bitcoin faces resistance at $38,105 and $39,600, with support at $35,593 and $31,862. Meanwhile, Dogecoin’s price action on Friday could result in a bullish Marubozu candlestick if it closes near its high-of-day. This could indicate the potential for higher prices on Saturday. However, a reversal candlestick, such as a doji or shooting star, may suggest that a local top has been reached.

Bearish traders in Dogecoin are looking for the price to fall below the eight-day EMA, signaling a continuation of the downtrend and the formation of a local top. Dogecoin has resistance at $0.083 and $0.09, with support at $0.075 and the 7-cent mark.

Overall, the price movements of Bitcoin, Ethereum, and Dogecoin indicate the potential for further volatility and possible trend continuation. Traders will closely monitor volume and key support and resistance levels to gauge the strength of these cryptocurrencies.