Bitcoin and Ethereum Rally: Weekend Perspectives Bitcoin and Ethereum Rally: Weekend Perspectives

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By Ronald Tech

Impressive Performance BTC/USD during Friday’s 24-hour trading session has seen a nearly 6% surge, mirroring the record high of the S&P 500, soaring above 5,000.

The apex crypto, followed by Ethereum ETH/USD, has exhibited an impressive spike of about 14% and 11%, respectively, since Feb. 5. As the weekend beckons, both cryptos find themselves entangled in a tussle with crucial technical resistance levels.

In contrast, Dogecoin DOGE/USD has displayed relative weakness, hovering marginally above the 8-cent threshold – an area restraining the crypto since Jan. 23.

Bitcoin’s robust price action over the last few days has propelled the Grayscale Bitcoin Trust ETF GBTC, the pioneering spot Bitcoin ETF ratified last month, to ascend by about 14% during the recent four trading days.

On Friday, GBTC was inching closer to the Jan. 11 all-time high of $43.50. If Bitcoin continues its upward trajectory over the weekend, the spot Bitcoin ETF might witness a gap open at Monday’s trading commencement, potentially giving rise to a Three Gaps Up pattern.

With an average 30-day trading volume of about 16,000 shares, GBTC remains highly liquid, offering traders and investors the flexibility to manage their trades.

Chart Analysis reveals that Bitcoin and Ethereum have broken out from bull flag patterns, confirming the continuation of their upward trends. While neither crypto has reached their next higher highs within the pattern, Friday’s session could witness significant upper wicks, leading to the printing of shooting star candlesticks, hinting at a possible local peak and an imminent retracement.

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Bullish traders hope for a temporary pause in Bitcoin and Ethereum’s upward trajectory to avoid entering overbought territory on the daily chart. Conversely, bearish traders await a decline in the cryptos’ bullish momentum, potentially prompting a back-test of their eight-day exponential moving averages.

Bitcoin’s resistance is anticipated at $48,475 and $52,100, while support lies at $45,814 and $43,200.

Foreseeably, substantial volume could propel Dogecoin to make a decisive move from its current position, compelling the crypto to opt for a direction. A move higher would likely encounter resistance at the 50-day simple moving average, while a downturn might find at least temporary support at the 200-day SMA.

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