Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO:ETH) traded in a narrow range on Friday. Unlike the S&P 500, which fell when the Department of Labor released new higher-than-expected employment numbers, Bitcoin and Ethereum failed to react. This may have been an early indicator that the negative stock market reaction was not gaining momentum, and on Friday afternoon the S&P 500 climbed higher to trade within Thursday’s range.
Although the Dogecoin slipped around 3%, the slowdown was unlikely to be related to broader markets. Dogecoin has been in an uptrend since Nov. 21 and hasn’t hit a low since Nov. 25, indicating a pullback.
With the S&P 500 trading near the 200-day simple moving average and up about 15% from its lows, traders and investors are watching closely to see if the index is signaling that the bear market is over. Over the weekend, traders will be watching Bitcoin and Ethereum in particular for clues as to how the S&P 500 might perform over the next week.
The Bitcoin Chart
Bitcoin returned to an uptrend on November 22 after forming a double bottom near $15,500. The last high for the cryptocurrency was formed at $17,317 on Thursday and the last confirmed low was set at $15,992 on November 28.
On Friday, bitcoin worked to print a doji candle, which could indicate that the next low has been reached and the cryptocurrency is trading higher during Saturday’s session. When that happens, bullish traders will want to see Bitcoin break above $17,320 to confirm that the uptrend is intact.
There are also chances that Bitcoin will form a minor bullish flag pattern on the daily chart. If the pattern is spotted and Bitcoin breaks out of the flag, the measured move is around 7%, suggesting that the cryptocurrency could surge above $18,000 in the coming days.
Bitcoin resistance lies above $17,580 and $19,915 and support below $16,000 and $15,000.
The Ethereum chart
Ethereum is trading in tandem with Bitcoin, in an uptrend and a possible minor bullish flag pattern. Ethereum’s recent high was formed at $1,311 on Wednesday and the last confirmed low was formed at $1,150 on November 28.
The measured movement of the Ethereum bull flag pattern is around 13%, which suggests that the cryptocurrency could rally towards $1,430. If Ethereum falls below the eight-day exponential moving average (EMA), the bull flag will be cancelled. Ethereum has resistance above $1,412 and $1,717 and support below at $1,245 and $1,081.
The Dogecoin Chart
Dogecoin returned to its recent uptrend on Nov. 22, marking a low of 8 cents and a high of 11 cents on Wednesday. During Friday’s trading session, the cryptocurrency pulled back from the eight-day EMA and bounced off that level.
If Dogecoin trades higher over the weekend, Friday’s daily low will serve as the next low in the uptrend. The lower Dogecoin wick developed on the chart during the session supports the theory that the next low may have arrived.
Dogecoin has resistance at 12 cents at $0.135 above and support at $0.083 and $0.075 below. There is also support and resistance at 10 cents, which Dogecoin has struggled to regain.
Should Ethereum investors sell immediately? Or is it worth starting?
How will Ethereum grow now? Is an entry worth it or should investors sell instead? Find out the answers to these questions and why you need to act now in today’s Ethereum analysis.