Bitcoin (CRYPTO: BTC) popped up almost 3% higher on Friday morning but was dragged down by the general market shortly after the regular trading session opened.
Ethereum (CRYPTO: ETH), which followed Bitcoin higher was holding onto some of its gains, trading up about 1.2%, while Dogecoin (CRYPTO: DOGE) was the weakest of the three, declining about 1.3% over the 24-hour period.
The crypto sector has shown relative strength in comparison to the general markets over the last few weeks. Since Sept. 21, Bitcoin has up about 2%, Ethereum is down about 1.3% and Dogecoin is flat to where it opened that trading day.
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In contrast, the S&P 500 has declined over 7% during the same time period, falling within a downtrend pattern on the daily chart.
The crypto sector has flat-lined, trading sideways over the past few weeks but traders and investors can watch for Bitcoin, Ethereum and Dogecoin to break up or down from the pattern to indicate the future direction the sector may take.
Here’s a look at the three cryptos:
The Bitcoin Chart: Bitcoin has been trading between $18,131 and $20,479 since Sept. 14, in short uptrends and downtrends. The crypto is currently trading in a downtrend within the sideways pattern, with the most recent lower high formed on Friday at $19,954 and the most recent lower low printed at the $18,131 mark on Thursday.
If Bitcoin closes the 24-hour trading period near its low-of-day price, the crypto will print a shooting star candlestick, which could indicate lower prices will come again on Saturday. If that happens, bullish traders will want to see a bullish candlestick, such as a doji or hammer candlestick, print above the $18,100 level to indicate the sideways pattern will continue.
Bitcoin has resistance above at $19,915 and $21,313 and support below at $18,293 and $17,580.
Also like Bitcoin, Ethereum was working to print a shooting star candlestick on the 24-hour chart.
Ethereum has resistance above at $1,421.80 and $1,717.41 and support below at $1,245 and $1,081.
Unlike Bitcoin and Ethereum, which have seen their 24-hour trading volume holding steady, Dogecoin’s trading volume has been declining, which may indicate a move either up or down from the sideways pattern is nearing. Traders can watch for a break to come on higher-than-average volume to indicate the pattern was recognized.
Dogecoin has resistance above at $0.065 and $0.075 and support below at $0.057 and at 5 cents.
