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Bitcoin BTC/USD was showing strength in comparison to the general market during Friday’s 24-hour trading session, rebounding over 3% while the S&P 500 edged about 1% lower at one point.
The strength in crypto has made investors wonder if the weakness in the general markets, caused by bearish data released this week, will be temporary.
Ethereum ETH/USD and Dogecoin DOGE/USD were following Bitcoin, bouncing about 3% higher. Micro-crypto Shiba Inu was also rebounding, trading up almost 4%.
Hot producer price index data released on Thursday didn’t appear to spook investors and Bitcoin crossed the $25,000 mark temporarily before sliding to close the session down over 3%.
Hawkish language from St. Louis President James Bullard, where he advocated for a 0.5% rate hike at the Fed’s next meeting, kicked off the Thursday afternoon selling spree.
The two-day decline in the general market could be a healthy pullback before the S&P 500 continues higher. Traders and investors will be watching the crypto sector, especially Bitcoin and Ethereum, over the President’s Day long weekend for signs of a bull rally in the stock market next week. For the current bear market to be confirmed over, the S&P 500 needs to regain 4,190.
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The Bitcoin Chart: Although Bitcoin negated its downtrend on Wednesday by surging almost 10% to form a higher high, the crypto hasn’t yet confirmed a new uptrend by printing a higher low. If the crypto surges up above Wednesday’s $25,256 high-of-day over the next few days, Friday’s low-of-day will serve as the higher low and confirm the new trend.
- Traders and investors may have seen the massive reversal to the upside on the horizon because on Monday, Bitcoin bounced up of the 0.382 Fibonacci retracement level. The area is a strong support level and holding above the area may have acted as a bullish signal.
- Bullish traders want to see Bitcoin surge higher over the next few days or continue to trade sideways, possibly forming inside bar patterns, in order to gain the strength to make a higher high into next week. Bearish traders want to see big bearish volume come in and break Bitcoin down under the eight-day exponential moving average (EMA), which could indicate the current bull run is over.
- Bitcoin has resistance above at $25,772 and $29,321 and support below at $24,206 and $22,729.
The Ethereum Chart: Like Bitcoin, Ethereum negated its downtrend but on Thursday, by forming a higher high of $1,742.50, which was above the most recent lower high of $1,699.66. If Ethereum surges higher over the next few days, Friday’s low-of-day will serve as the higher low and confirm an uptrend.
- On Monday, Ethereum dropped to back-test the 50-day simple moving average (SMA) as support, which was healthy. On Tuesday, big bullish volume came in and pushed Ethereum up through the eight-day and 21-day EMAs, which indicates the bulls are in control.
- Bullish traders want to see big bullish volume come in and break Ethereum up over $1,750 to confirm a new uptrend is in the cards. Bearish traders want to see the crypto break down under the eight-day EMA.
- Ethereum has resistance above at $1,717 and $1,957 and support below at $1,564 and $1,421.
The Dogecoin Chart: Dogecoin is trading in a confirmed uptrend and has made a series of higher highs and higher lows. The crypto’s most recent higher low was formed on Monday at $0.079 and the most recent higher high was printed at the $0.091 mark on Thursday.
- If Dogecoin surges up toward $0.10 over the next few days, Friday’s low-of-day will serve as the next higher low within the pattern. If the crypto tops out under that level, a lower high will occur and Dogecoin may start forming a downtrend.
- Bullish traders want to see big bullish volume come in and break Dogecoin up to form a higher high or for the crypto to continue trading sideways, which would lean bullish for continuation. Bearish traders want to see Dogecoin fall back under the eight-day EMA, which could hand power over to the bears.
- Dogeoin has resistance above at $0.091 and $0.099 and support below at $0.083 and $0.075.
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Photo: Shutterstock
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Image and article originally from www.benzinga.com. Read the original article here.