Bitcoin BTC/USD settled to trade mostly flatduring Fridays 24-hour trading session after attempting to break up above Thursdays high-of-day and failing to gain momentum.
The move was in tandem with the S&P 500, which wicked down from its high-of-day to close within Thursdays range. Ethereum ETH/USD and Dogecoin DOGE/USD followed suit, forming inside bar patterns on lower-than-average volume.
On Dec. 13, the U.S. Labour Department will release consumer price index data, which the Federal Reserve will use to guide its decision on how high to hike interest rates the next day. Both numbers are likely to influence the direction of both the general market and the crypto sector, which may mean that until then, Bitcoin, Ethereum and Dogecoin will trade sideways.
Heres a look at the three cryptos heading into the events.
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The Bitcoin and Ethereum Charts: Bitcoin and Ethereum have been trading in tandem, mostly sideways since Dec. 1. Overall, trading volume on the two cryptos has been declining, which indicates consolidation is taking place. Decreasing volume is often followed by a big burst of volume, which is likely to break Bitcoin and Ethereum up or down from the sideways pattern. That big burst of volume may come in reaction to CPI data or the Federal Reserves decision next week. Over the weekend, traders and investors will be watching to see if Bitcoin and Ethereum show any signs of predicting how the stock market will react to next weeks numbers. If the reaction is bullish, traders will want to see the two cryptos work their way up to regain support at the 50-day simple moving average (SMA). Bitcoin has resistance above at $17,580 and $19,915 and support below at $16,000 and $15,000. Ethereum has resistance above at $1,412 and $1,717 and support below at $1,245 and $1,081.
The Bitcoin Chart:
The Ethereum Chart:
The Dogecoin Chart: Dogecoin has recently shown slightly more volatility compared to Bitcoin and Ethereum, trading in a downtrend between parallel trendlines. The price action has caused Dogecoin to form a falling channel pattern, which is considered bearish for the short term butbullish down the road. If Dogecoin reacts bullishly to the events next week and breaks up from the upper descending trendline of the channel, a longer-term uptrend could be on the horizon. If the crypto reacts bearishly, Dogecoin may lose support at the 50-day SMA, which could indicate a larger retracement is on the horizon. Like Bitcoin and Ethereum, Dogecoins trading volume has been decreasing. In Dogecoins case, the declining volume leans bullish because, paired with the lower trending prices, it indicates the bearish pressure is weakening. Dogecoin has resistance above at $0.10 and 12 cents and support below at $0.091 and $0.083.
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Photo:Kanchanara on Unsplash
