Ethereum and Dogecoin suggest a new bullish crypto cycle, but Bitcoin needs to get back to that level: what to watch – Bitcoin (BTC/USD)

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Bitcoin BTC/USD rose more than 2% during Friday’s 24-hour trading session, approaching the 200-day simple moving average (SMA) in tandem with the S&P 500, which behaved similarly. way.

Ethereum ETH/USD regained the 200-day SMA on Thursday and Dogecoin surged above the zone on Monday.

The 200 day SMA is an important indicator. Technical traders and investors consider a stock trading above the daily chart level to be in a bullish cycle, while a stock trading below the 200-day SMA is considered to be in a bearish cycle.

The 50-day SMA also plays an important role in technical analysis, especially when paired 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 Dogecoins chart on November 10, the 50-day SMA remains below the 200-day trend on the Bitcoin and Ethereums charts.

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The Bitcoin Chart: Bitcoin started trading in an uptrend on December 30 and has since printed some higher highs and lows on the daily chart. The most recent low was formed on January 6 at $16,670 and the most recent confirmed high was printed the same day at $17,027.

Since then, Bitcoin has risen almost 15%, without pulling back to print a higher low. This indicated that a downward retracement was likely on the horizon.

The crypto was also likely to trade lower or consolidate over the next few days as Bitcoins Relative Strength Index (RSI) measured around 84%. When an RSI of stocks or cryptos reaches or exceeds the 70% level, it becomes overbought, which can be a sell signal for technical traders.

Consolidation or retracement was likely to occur when Bitcoin hits the 200-day SMA on the daily chart, as this is a strong support and resistance zone.

Bitcoin has resistance above $19,915 and $20,545 and support below at $18,835 and $17,580.

The Ethereum Chart: Ethereum backtested the 200-day SMA as support during Friday’s session and rebounded slightly from the zone. If Ethereum can stay above 200 days for a series of days, the 50-day SMA will move above 200 days, which would give bullish traders more confidence going forward.

Like Bitcoin, Ethereum was trading in a strong uptrend, with the most recent higher low formed on January 6 at $1,234.20 and the most recent confirmed high created at $1,276.60 on the same day. . Also, like Bitcoin, Ethereum had not printed a higher dip in many trading sessions, making a retracement likely.

Ethereum has resistance above $1,421.80 and $1,564.17 and support below at $1,308.89 and $1,231.38.

The Dogecoin Chart: Dogecoin had been trading in an uptrend since December 30 and posted its most recent low on Thursday at $0.0.73 and its most recent high the previous day at $0.079. On Friday, Dogecoin was trading higher but on below average volume, suggesting a retracement could be in the cards.

Dogecoin was also working to print a doji candlestick. When a doji candlestick is created in an uptrend, it can signal that the temporary top is in place. Dogecoin may need to consolidate below the 50-day SMA before gaining enough power to break above the level.

Unlike Bitcoin and Ethereum, Dogecoins RSI was not in overbought territory, which suggested the crypto had room to rise further without becoming overbought.

Dogecoin has resistance above $0.083 and $0.091 and support below $0.075 and $0.07.

Read Next:Dogecoin Finally Gets Support From Twitter’s “Cashtag” Price Index

Photo:CarbonatErolvia Shutterstock

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