Bitcoin, Ethereum Soar Leaving Dogecoin In The Dust: A Look At The Cryptos Into The Weekend

Bitcoin, Ethereum Soar Leaving Dogecoin In The Dust: A Look At The Cryptos Into The Weekend

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Bitcoin BTC/USD was surging almost 6% higher during Friday’s 24-hour trading session, in tandem with the S&P 500, which reached another new all-time high and was bidding to close above 5,000.

The apex crypto and Ethereum ETH/USD have spiked about 14% and 11%, respectively, since Feb. 5 and heading into the weekend, both cryptos were battling key technical resistance levels.

Dogecoin DOGE/USD has shown weakness in comparison, stalling just above the 8-cent mark –an area that’s been holding the crypto down since Jan. 23.

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Bitcoin’s bullish price action over the last few days has caused the Grayscale Bitcoin Trust ETF GBTC, the first spot Bitcoin ETF to be approved last month, to rise about 14% over the last four trading days.

On Friday, GBTC was working its way up toward the Jan. 11 all-time high of $43.50, and if Bitcoin continues to trade higher over the weekend, the spot Bitcoin ETF could gap open to start Monday’s trading session, causing a Three Gaps Up pattern to form.

GBTC is highly liquid, offering traders and investors a high level of flexibility to manage their trades, with an average 30-day trading volume of about 16,000 shares.

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The Bitcoin and Ethereum Charts: Bitcoin and Ethereum broke up from bull flag patterns on Feb. 7 and Feb. 6, respectively, and have since confirmed their uptrend patterns remain intact. Bitcoin’s most recent higher low was formed at $42,228 on Sunday and Ethereum’s most recent higher low was printed at the $2,266 mark on Monday.

Since those dates, neither Bitcoin nor Ethereum has printed their next higher highs within the pattern but if the cryptos close Friday’s session with significant upper wicks, Bitcoin and Ethereum will print shooting star candlesticks, which could indicate the local top has occurred and a retracement is on the horizon.

Bullish traders want to see Bitcoin and Ethereum pause their current rallies temporarily, which will help the cryptos from entering into overbought territory on the daily chart. Bearish traders may choose to wait until bullish momentum in the cryptos begins to decrease, which could cause Bitcoin and Ethereum to back-test their eight-day exponential moving averages.

Bitcoin has resistance above at $48,475 and at $52,100 and support below at $45,814 and at $43,200.

Eventually, big volume is likely to come into the crypto, which is likely to break Dogecoin either up or down from that area, which will force the crypto to choose a direction. The 50-day simple moving average will likely act as resistance on a move higher, while the 200-day SMA will act as at least temporary support if Dogecoin drops.

Photo by Jack B on Unsplash

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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