Dogecoin Surge, Bitcoin and Ethereum Set to Soar: A Look at the Weekend Cryptos - Bitcoin (BTC/USD), Ethereum (ETH/USD), Dogecoin (DOGE/USD)

Dogecoin Surge, Bitcoin and Ethereum Set to Soar: A Look at the Weekend Cryptos – Bitcoin (BTC/USD), Ethereum (ETH/USD), Dogecoin (DOGE/USD)

Bitcoin BTC/USD was up about 1.8% during Friday’s 24-hour trading session in tandem with the S&P500which jumped more than 2%.

Ethereum ETH/USD also increased by more than 2%, while Dogecoin DOGE/USD skyrocketed nearly 12% after Elon Musk’s deal to buy Twitter was struck.

Learn more about Musk’s takeover of Twitter here.

Dogecoin regained the 200-day simple moving average (SMA) on Friday, which Benzinga announced on Thursday. Bitcoin and Ethereum were 17% and 8% below the 200-day SMA, respectively, but are settling into bullish flag patterns, which could help the two apex cryptos gain ground over the weekend.

The bull flag pattern is created with a sharp higher rise forming the pole, which is then followed by a consolidation pattern that pulls the stock lower back into a channel with parallel lines or into a squeeze triangle pattern.

  • For bearish traders, the “trend is your friend” (until it isn’t) and the stock may continue to fall into the next channel for a short time. Aggressive traders may decide to short the security at the upper trendline and exit the trade at the lower trendline.
  • Bullish traders will want to watch a break of the upper falling trendline of the flag formation, on high volume, for entry. When a security breaks out of a bull flag pattern, the measured upward movement is equal to the length of the pole and should be added to the lowest price in the flag.

A bullish flag is canceled when a stock closes on 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% rise on Tuesday and Wednesday, coupled with consolidation on Thursday and Friday, may have set the crypto up in a bull flag pattern on the 24-hour chart. If the pattern is recognized, the measured move could push the crypto towards the $22,000 mark.

Traders and investors can watch for Bitcoin to break away from the flag’s upper descending trend line on above average volume to indicate that the pattern has been recognized. If the crypto falls below the eight-day exponential moving average, the pattern will be cancelled.

Bitcoin has been trading in an uptrend since Oct. 21, with the latest high formed on Wednesday at $21,022 and the most recent confirmed low printed at $19,240 on Tuesday. If Bitcoin breaks down from the flag formation, bullish traders will want to see the crypto form a bullish reversal candlestick, like a doji or hammer candlestick, above $19,300 to gain confidence that the trend bullish will continue.

Bitcoin has resistance above $21,313 and $22,720 and support below at $19,915 and $17,580.

The Ethereum chart: Like Bitcoin, Ethereum appears to have settled into a bullish flag between Tuesday and Friday, with the pole forming in the first two days of the period and the flag forming over the following days. The measured move, if the Ethereum bull flag is recognized, is 19.5%, indicating that the crypto could soar towards $1,770.

  • Ethereum is also trading in a confirmed uptrend, with the most recent low created on Monday at $1,324 and the most recent confirmed high formed at $1,595 on Wednesday. If Ethereum breaks through the bull flag pattern, Friday’s daily low could mark the next higher low in the uptrend.
  • Ethereum has resistance above $1,717.41 and $1,957.24 and support below at $1,421.80 and $1,245.

Click here for tickets and information for Benzinga’s Future of Crypto conference on December 7 in New York!

The Dogecoin chart: After consolidating on shorter time frames below the 200-day SMA during Thursday’s 24-hour session, Dogecoin rallied back to the level on Friday morning. From a technical standpoint, Dogecoin is currently in a bullish cycle, but it is unclear how long the sentiment will last.

  • Dogecoin started an uptrend on October 13, but has not formed a higher low since October 21, when the crypto bounced above 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 an upward reversal occur above or on the 200-day SMA.
  • Dogecoin has seen well above average volume over the past three 24-hour trading periods, indicating high interest in the crypto. As of Friday afternoon, Dogecoin volume measured around 1.15 billion on Coinbase, compared to the 10-day average of 275.95 million.
  • Dogecoin has resistance above $0.083 and $0.099 and support below $0.075 and $0.067.

See also: Dogecoin Price Rises Over 9% in 24 Hours

Photo: Shutterstock

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