Cryptocurrency Movement Analysis
Bitcoin BTC/USD has been consolidating after peaking at $52,890 on Thursday, a level not seen since November 10, 2021.
Ethereum ETH/USD has been following Bitcoin into consolidation, trading near its 19-month high of $2,868.68, while Dogecoin DOGE/USD continued in a horizontal pattern after reaching a high of $0.088 on the same day.
Despite Bitcoin showing signs of a local top, Morgan Creek CEO Mark Yusko predicts a potential rise to approximately $150,000 after the next Bitcoin halving in April, stating that the current bull run is just getting started.
The Grayscale Bitcoin Trust ETF GBTC, recently approved as the spot Bitcoin ETF, has surged about 33% since January 23, likely to continue its upward trend in alignment with Bitcoin.
GBTC is displaying a possible bull flag pattern above the Jan. 11 high of $43.50, mirroring Bitcoin and Ethereum from a technical analysis perspective.
Both Bitcoin and Ethereum seem to be forming bull flag patterns, indicating potential continued upward movement.
Bitcoin and Ethereum appear to be working towards printing bull flag patterns, with the potential for a breakout on higher-than-average volume, suggesting a significant rise.
If Ethereum and Bitcoin sustain their consolidation within flag formations over the weekend, it will help drop their relative strength index levels back under the 70% mark, providing room for easier upward movement.
For bearish traders, the key is for Bitcoin and Ethereum to drop under their eight-day exponential moving averages (EMAs) to negate the bull flags and signal a potential downtrend.
Bitcoin has resistance levels at $52,100 and $55,000, with support at $48,475 and $45,814; Ethereum shows resistance levels at $2,868 and $2,950, with support at $2,1717 and $2,609.
The Dogecoin Chart: Dogecoin has been in an uptrend since early February, with resistance at 9 cents and $0.099, and support at $0.083 and $0.077.
Dogecoin has been holding above support at the eight-day EMA and the 50-day simple moving average (SMA), indicating a possible continuation of its upward trend, subject to confirmation through volume movements.
The battle between bulls and bears for control is reflected in two back-to-back doji candlesticks, suggesting a potential shift in Dogecoin’s direction based on bullish or bearish volume movements.
To affirm the ongoing uptrend, big bullish volume must propel Dogecoin to break above Thursday’s high, while a breach of the 50-day SMA by bearish volume could lead to downside pressure and potential testing of the 200-day SMA.
