Bitcoin (CRYPTO: BTC) was showing strength in comparison to the general market during Friday’s 24-hour trading session, despite trading slightly lower.
The S&P 500 gapped down and continued to slide almost 2% lower during the regular session, in a continued bearish reaction to CPI data from the U.S. Labor Department and in anticipation of a sharp rate hike coming from the Federal Reserve on Wednesday.
Ethereum (CRYPTO: ETH) was slightly weaker, trading down over 3%, while Dogecoin (CRYPTO: DOGE) was trading relatively flat.
Traders and investors of both the crypto sector and the stock market will be watching the apex cryptocurrencies closely over the weekend for clues on how the S&P may behave next week.
Despite crypto winter gripping the sector earlier this year, bullish short-term cycles in the crypto sector have often predicted similar action in the general market.
Want direct analysis? Find me in the BZ Pro lounge! Click here for a free trial.
The Bitcoin Chart: Bitcoin attempted to break up above the important psychological $20,000 level during Friday’s session but failed and wicked down from just below the area. The bears were unable to drop the crypto with momentum, however, due to lower-than-average and decreasing volume, which may indicate Bitcoin is running out of sellers.
- Bitcoin may be entering into a consolidation phase, which could last over the weekend. The massive decline on Tuesday may need to settle for a few more days before either bulls or bears regain interest.
- Although the crypto negated a downtrend on Sept. 9, an uptrend hasn’t yet confirmed because Bitcoin hasn’t printed a higher low above $18,527. If Bitcoin prints a bullish reversal candlestick above the area, such as a doji or hammer candlestick, the crypto could be in for a bounce.
- It should be noted that on the weekly chart, Bitcoin printed a lower high, which indicates a long-term downtrend could be in the cards.
- Bitcoin has resistance above at $19,915 and $21,313 and support below at $17,580 and $16,000.
- On Friday afternoon, the bulls were trying to hold Ethereum over the $1,400 mark and the bears were trying to push it lower, albeit unsuccessfully. Bullish traders will want to see that level hold and for Ethereum to print a bullish reversal candlestick above the area to indicate a bounce to the upside is on the horizon.
- Ethereum has resistance above at $1,717.41 and $1,957.24 and support below at $1,421.80 and $1,245.
- Like with Bitcoin, the bulls and the bears are in a fierce battle to break Dogecoin up or down from the psychologically important 6-cent mark. If the crypto is unable to regain the level as support, bullish traders will want to see the $0.057 level hold for the crypto to print a double bottom pattern at the area.
- Dogecoin has resistance above at $0.063 and $0.07 and support below at $0.057 and the 5-cent level.
Photo via Shutterstock.
