March 17, 2023 4:27 PM | 3 min read
Bitcoin (CRYPTO: BTC) was surging more than 7% higher during Friday’s 24-hour trading session, outpacing Ethereum (CRYPTO: ETH) and Dogecoin (CRYPTO: DOGE), which were trading higher by about 3%.
The move came in tandem with spot gold, which was rallying almost 3% higher, to reach a price not seen since April 18, 2022.
The move came in contrast to the S&P 500, which rejected the 200-day simple moving average (SMA) at the high-of-day and subsequently dropped about 1.6%.
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The strength in the crypto sector and in gold comes ahead of the Federal Reserve’s decision next week, where the central bank will decide whether it will continue to raise interest rates following the recent failure of several banks, and if so, whether it will apply a 0.25% or 0.5% hike.
Bitcoin’s move north was taking place on higher-than-average volume, which indicates a strong level of interest in the crypto from the bulls. Traders and investors will be watching the crypto sector closely over the weekend for indications of how the stock market may trade next week.
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The Bitcoin Chart: Bitcoin is trading in a confirmed uptrend, with the most recent higher high formed on Tuesday at $26,553 and the most recent higher low printed at the $23,931 mark on Wednesday. On Friday, Bitcoin spiked up above Tuesday’s high-of-day to confirm the uptrend is intact.
- If Bitcoin closes the trading day near its high-of-day price, the crypto will print a bullish Marubozu candlestick, which could indicate higher prices will come again on Saturday. The next most likely scenario is that Bitcoin enters into a consolidation phase to print an inside bar pattern, which would be bullish for continuation.
- If Bitcoin ends the trading day with a significant upper wick, it could indicate lower prices are on the horizon. A retracement is likely to occur soon because the crypto’s relative strength index (RSI) is nearing overbought territory.
- Bitcoin has resistance above at $28,690 and $31,418 and support below at $25,772 and $25,288.
The Ethereum Chart: Like Bitcoin, Ethereum is also trading in an uptrend, with the most recent higher high formed on Tuesday at $1,787 and the most recent higher low created at the $1,613 mark on Wednesday. Unlike Bitcoin, Ethereum didn’t print a higher high on Friday and if the crypto trades lower on Saturday, the current uptrend will be negated with the formation of a lower high.
- Also like Bitcoin, Ethereum may begin to consolidate over the weekend, which would lean bullish. Ethereum’s RSI has room to run before entering overbought territory.
- Ethereum has resistance above at $1,957 and $2,150 and support below at $1,717 and $1,564.
The Dogecoin Chart: Like Ethereum, Dogecoin is trading in an uptrend but on Friday, could be forming a lower high to negate that trend. As it stands, Dogecoin’s most recent higher high was formed on Tuesday at $0.077 and the most recent higher low was printed at the $0.067 mark on Wednesday.
- Unlike Bitcoin and Ethereum, Dogecoin is trading under the 200-day SMA, which indicates the crypto is in a bear cycle. If the crypto is able to break up above Tuesday’s high-of-day, however, Dogecoin could regain the 200-day, which would be bullish.
- In terms of Dogecoin’s RSI, the crypto has room to go in either direction because the indicator is measuring in at about 48% but the momentum leans bullish.
- Dogecoin has resistance above at $0.075 and $0.083 and support below at $0.07 and $0.065.
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