Bitcoin Bitcoin/USD traded slightly higher during Friday’s 24-hour trading session, lagging the open market. S&P 500 Many tech stocks surged after Tesla’s strong earnings report, gaining about 0.6%.
The crypto sector was recently cut off from the general market by Bitcoin. ethereum Ethereum/USD When dogecoin Doge/US Dollar Mainly sideways trading.
Sideways consolidation is healthy and necessary as indicators of the relative strength of the three cryptos reached overbought territory after the massive price surge that began in late December. , the RSI levels of the three cryptocurrencies could drop.
RSI is an indicator used by technical traders to measure bullish and bearish price momentum. RSI levels range between 0 and 100, and levels between 30 and 70 are generally considered healthy.
- A stock is considered oversold when its RSI drops below 30%. When a stock enters oversold territory, it indicates that the security price no longer reflects the true value of the asset, which could indicate a reversal to the card’s rise.
- A stock is considered overbought when its RSI rises above the 70% area. When a stock enters overbought territory, it indicates that the security price has risen to its intrinsic value, which could signal a reversal to the downside on the horizon.
The RSI is best used in conjunction with other signals and patterns on stock charts. This is because stocks can remain in oversold and overbought territory for a long period of time before reversing.
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Bitcoin chart: Bitcoin has been consolidating between about $22,298 and $23,824 since January 21st. On Thursday and Friday, Bitcoin’s consolidation took place in the form of two inside bars, with all price movements within his 24-hour trading range on Wednesday.
On Wednesday and Friday, Bitcoin retreated slightly to test the 8-day exponential moving average (EMA) as support and above the level.The 8-day EMA pushed Bitcoin higher on Jan. 6. and may continue to serve as support.
If Bitcoin ends the trading session near its highs for the day, the cryptocurrency could print a hammer candlestick, signaling a higher price on Saturday. If that happens, traders hope Bitcoin will surge above Wednesday’s highs with higher-than-average volume, which could indicate a long-term run is on the horizon. There is a possibility
Bearish traders are hoping that Bitcoin will break out of its sideways trading range, which could signal the end of the current bull cycle and a downtrend.
Bitcoin has resistances at $24,206 and $25,772 and supports at $22,729 and $21,313.
Ethereum and Dogecoin Charts: Similar to Bitcoin, Ethereum and Dogecoin have been trading in a sideways pattern, forming a double inside bar pattern on Thursday and Friday. was occurring. Dogecoin has been consolidating between $0.077 and $0.093 since January 13th.
Also, similar to Bitcoin, Ethereum and Dogecoin were almost above the 8-day EMA, which could continue to push the cryptocurrency higher. For short-term traders, a close below the 8-day EMA can be a solid exit strategy.
Ethereum and Dogecoin Bulls Hope Crypto Breaks Out of Horizontal Pattern with Higher-than-Average Volume, But Bears Expect Ethereum and Dogecoin to Break Down Bearishly from Jan. 18 Lows I hope
Ethereum has resistances at $1,717.41 and $1,957.24 and supports at $1,564.17 and $1,421.80.
Dogecoin has resistance above $0.091 and $0.099 and support below $0.083 and $0.075.
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