Bitcoin BTC/USD was spiking up about 1.8% higher during Friday’s 24-hour trading session in tandem with the S&P 500which was surging over 2%.
Ethereum ETH/USD was also rising more than 2%, while Dogecoin DOGE/USD was skyrocketing almost 12% higher after Elon Musk’s deal to purchase Twitter closed.
Read more about Musk’s Twitter takeover here.
Dogecoin regained the 200-day simple moving average (SMA) on Friday, which Benzinga called out on Thursday. Bitcoin and Ethereum were 17% and 8%, respectively, under the 200-day SMA but are settling into bull flag patterns, which could help the two apex cryptos to gain ground over the weekend.
The bull flag pattern is created with a sharp rise higher forming the pole, which is then followed by a consolidation pattern that brings the stock lower between a channel with parallel lines or into a tightening triangle pattern.
- For bearish traders, the “trend is your friend” (until it’s not) and the stock may continue downwards within the following channel for a short period of time. Aggressive traders may decide to short the stock at the upper trendline and exit the trade at the lower trendline.
- Bullish traders will want to watch for a break up from the upper descending trendline of the flag formation, on high volume, for an entry. When a stock breaks up from a bull flag pattern, the measured move higher is equal to the length of the pole and should be added to the lowest price within the flag.
A bull flag is negated when a stock closes a trading day below the lower trendline of the flag pattern or if the flag falls more than 50% down the length of the pole.
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The Bitcoin Chart: Bitcoin’s 9% surge during Tuesday and Wednesday, paired with Thursday and Friday’s consolidation, may have settled the crypto into a bull flag pattern on the 24-hour chart. If the pattern becomes recognized, the measured move could take the crypto up towards the $22,000 mark.
Traders and investors can watch for Bitcoin to break up from the upper descending trendline of the flag on higher-than-average volume to indicate the pattern was recognized. If the crypto falls under the eight-day exponential moving average, the pattern will be negated.
Bitcoin has been trading in an uptrend since Oct. 21, with the most recent higher high formed on Wednesday at $21,022 and the most recent confirmed higher low printed at the $19,240 mark on Tuesday. If Bitcoin breaks down from the flag formation, bullish traders will want to see the crypto form a bullish reversal candlestick, such as a doji or hammer candlestick, above $19,300 for confidence the uptrend will continue.
Bitcoin has resistance above at $21,313 and $22,720 and support below at $19,915 and $17,580.
The Ethereum Chart: Like Bitcoin, Ethereum looks to have settled into a bull flag between Tuesday and Friday, with the pole forming over the first two days of the time period and the flag forming over the days that followed. The measured move, if Ethereum’s bull flag is recognized, is 19.5% which indicates the crypto could soar towards $1,770.
- Ethereum is also trading in a confirmed uptrend pattern, with the most recent higher low created on Monday at $1,324 and the most recently confirmed higher high formed at the $1,595 mark on Wednesday. If Ethereum breaks up through the bull flag pattern, Friday’s low-of-the-day may mark the next higher low within the uptrend.
- Ethereum has resistance above at $1,717.41 and $1,957.24 and support below at $1,421.80 and $1,245.
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The Dogecoin Chart: After consolidating on smaller timeframes under the 200-day SMA during Thursday’s 24-hour session, Dogecoin regained the level Friday morning. From a technical standpoint, Dogecoin is now enjoying a bull cycle, but it is not clear how long the sentiment will last.
- Dogecoin started an uptrend on Oct. 13 but hasn’t formed a higher low since Oct. 21, when the crypto bounced up off the $0.057 mark. Eventually, Dogecoin will retrace lower to print its next higher low and when that happens, bullish traders will want to see a reversal to the upside take place above or on the 200-day SMA.
- Dogecoin has seen far-above-average volume over the last three 24-hour trading periods, which indicates a high amount of interest in the crypto. As of Friday afternoon, Dogecoin’s volume was measured in at about 1.15 billion on Coinbase, compared to the 10-day average of 275.95 million.
- Dogecoin has resistance above at $0.083 and $0.099 and support below at $0.075 and $0.067.
See Also: Dogecoin’s Price Increased More Than 9% Within 24 hours
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