Bitcoin and Ethereum Show Bull Flags As Dogecoin Slides In An Uptrend: A Cryptocurrency Market Analysis

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By Ronald Tech

Cryptocurrency Overview

Bitcoin (BTC/USD) was consolidating during Friday’s trading session after reaching a high of $52,890 on Thursday, a level the apex crypto hasn’t traded at since Nov. 10, 2021. Similarly, Ethereum (ETH/USD) was following Bitcoin into consolidation, trading near its 19-month high of $2,868.68 printed on Thursday, while Dogecoin (DOGE/USD) continued in the horizontal pattern it started after reaching a high of $0.088 on that same day.

Trending Predictions

Despite Bitcoin flashing technical indicators that the local top may have occurred, Morgan Creek CEO Mark Yusko predicted the crypto will reach approximately $150,000 after the next Bitcoin halving in April, stating that the current bull run is “just getting started.”

Market Analysis

Grayscale Bitcoin Trust ETF (GBTC), the first spot Bitcoin ETF to be approved last month, is up about 33% since Jan. 23. On Friday, GBTC was mirroring Bitcoin and Ethereum from a technical analysis perspective, by working to print a possible bull flag pattern above the Jan. 11 high of $43.50. GBTC is highly liquid, offering traders and investors a high level of flexibility.

The Bitcoin and Ethereum Charts: While Bitcoin was holding stronger than Ethereum, both cryptos appeared to be working to print bull flag patterns with their poles formed between Feb. 6 and Thursday and the flags beginning to form on Friday. If the cryptos break up from the pattern on higher-than-average volume, the measured move is about 24% for Bitcoin and Ethereum, suggesting they could rise toward the $64,100 and $3,249 mark, respectively.

Technical Indicators

If Bitcoin and Ethereum continue to consolidate within flag formations over the weekend, it will help the cryptos to drop their relative strength index levels back under the 70% mark, which will move Bitcoin and Ethereum down from overbought territory, giving them room to move higher more easily. Bearish traders want to see Bitcoin and Ethereum drop under their eight-day exponential moving averages (EMAs), which will negate the bull flags.

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Bitcoin has resistance above at $52,100 and at the psychologically important $55,000 mark and support below at $48,475 and at $45,814. Ethereum has resistance above at $2,868 and at $2,950 and support below at $2,1717 and at $2,609.

Dogecoin Analysis

Dogecoin started trading in an uptrend on Feb. 5 after bouncing repeatedly up from the $0.077 mark beginning on Jan. 25. The crypto’s most recent higher high was formed on Thursday at $0.088 and the most recent confirmed higher low was printed at the $0.079 mark on Feb. 9. On Thursday and Friday, Dogecoin was holding above support at the eight-day EMA and the 50-day simple moving average (SMA) and attempting to print two back-to-back doji candlesticks, which indicate the bulls and bears and battling for control.

Dogecoin has resistance above at 9 cents and at $0.099 and support below at $0.083 and at $0.077.

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