HomeBusinessA Look At Bitcoin, Ethereum, Dogecoin Over The Weekend After Fed's Powell...

A Look At Bitcoin, Ethereum, Dogecoin Over The Weekend After Fed’s Powell Craters Markets

Bitcoin BTC/USD slipped more than 4% lower on Friday after the Federal Reserve chairman Jerome Powell threw the markets into chaos during his annual speech at the Jackson Hole Symposium.

Ethereum ETH/USD was hardest hit, falling by more than 8%, while Dogecoin DOGE/USD declined somewhat more modestly along with Bitcoin, down about 5%.

The bearish response to Powell’s aggressive tone caused the three cryptos to bearishly break the bear flag patterns that Benzinga indicated on Wednesday.

The bear flag pattern is created with a steep drop forming the pole, which is then followed by a consolidation pattern that brings the stock higher between a parallel-lined channel or in a tight triangular pattern.

For bullish traders, the “trend is your friend” (until it doesn’t) and the stock may continue to rise within the next channel for a short period of time. Aggressive traders may decide to buy the stock on the lower trendline and exit trading on the higher trendline.

  • Bearish traders will want to look for a breakdown of the flag formation lower down trendline, at high volume, for an entry point. When a stock breaks from a bear flag pattern, the measured lower move is equal to the length of the pole and must be added to the highest price within the flag.
  • A bear flag is wiped out when a stock closes a trading day above the top trendline of the flag pattern or if the flag rises more than 50% the length of the pole.

Need direct analysis? Find me in the BZ Pro lounge! Click here for a free trial.

The Bitcoin Chart: Bitcoin’s bear flag pattern developed between August 15 and Thursday, with the downward slope pole forming during the first five days of that time frame and the flag print in the days that followed. The measured movement of the pattern is about 17%, indicating that the crypto could fall to $18,100.

  • Friday’s sharp drop also negated the uptrend in which Bitcoin traded within the flag formation. For Bitcoin to confirm that a new downtrend is in the cards, the crypto will need to rally to print a lower high below $21,925.
  • The move lower came at a higher-than-average volume, indicating that the bears are both interested and in control. At the time of writing, Bitcoin’s volume was about 29.5 million on Coinbase, compared to the 10-day average of 23.78 million.
  • If the cryptocurrency closes its 24-hour trading session near its low for the day, Bitcoin will print a bearish Marubozu candlestick, which could mean lower prices will hit again on Saturday. If the crypto bounces up to form a lower pit, it could be rock bottom and the crypto could trade higher over the weekend.
  • Bitcoin has a resistance above $21,313 and $23,729 and support below at $19,915 and $18,775.

The Ethereum Chart: Like Bitcoin, Ethereum broke from a bear flag pattern that was created in almost the same time frame as Bitcoin’s flag. The measured move for Ethereum is 25%, suggesting that the crypto could drop to $1,290.

  • Unlike Bitcoin, Ethereum has not yet negated its uptrend. If the crypto falls below its most recent higher low, which was printed at $1,520 on Aug. 22, the uptrend is officially over and a downtrend may occur.
  • Ethereum has a resistance above $1,717.14 and $1,957.44 and support below at $1,421.80 and $1,245.

The Dogecoin Chart: Dogecoin’s breakdown of its bear flag is less convincing as the crypto’s volume is below average, indicating that the bears are weak.

At the time of writing, Dogecoin’s volume on Coinbase was approximately 307.2 million compared to the 10-day average of 323.83 million.

  • The below-average volume hampered the downward movement, and while Dogecoin slightly offset the uptrend, the sideways pattern in which the crypto traded within the flag formation is still intact.
  • Dogecoin has a resistance above USD 0.075 and USD 0.083 and support below at USD 0.065 and USD 0.057.

See also: What’s going on in the world with Bitcoin, Ethereum and Dogecoin dropping Friday?

#Bitcoin #Ethereum #Dogecoin #Weekend #Feds #Powell #Craters #Markets



Please enter your comment!
Please enter your name here

Most Popular