Bitcoin and Ethereum Showcase Strong Performance
Bitcoin (BTC/USD) is on a tear, rising nearly 6% in Friday’s 24-hour trading session and mirroring the S&P 500’s new all-time high. Ethereum (ETH/USD) has followed suit, spiking about 14% and 11% since Feb. 5. Both cryptos are getting close to breaking through key technical resistance levels ahead of the weekend, indicating a potential bullish trend.
Dogecoin Falls Behind
In contrast, Dogecoin (DOGE/USD) has exhibited weakness, hovering just above the 8-cent mark – a level that has been constraining the crypto since Jan. 23.
Implications for the Grayscale Bitcoin Trust ETF (GBTC)
The recent bullish momentum in Bitcoin has propelled the Grayscale Bitcoin Trust ETF (GBTC) to climb approximately 14% over the last four trading days, inching towards the Jan. 11 all-time high of $43.50. If Bitcoin continues to rally over the weekend, the spot Bitcoin ETF may open Monday’s trading session with a significant upward gap, forming a Three Gaps Up pattern.
Technical Analysis of Bitcoin and Ethereum
Bitcoin and Ethereum broke out from bull flag patterns on Feb. 7 and Feb. 6, respectively, confirming their uptrends. While neither crypto has reached the next higher high within the pattern, a close on Friday’s session with significant upper wicks could indicate a potential retracement as shooting star candlesticks appear. Ideally, bullish traders hope for a temporary pause in the rally to avoid overbought conditions, while bearish traders may wait for a decrease in bullish momentum to prompt a back-test of the eight-day exponential moving averages.
Bitcoin faces resistance at $48,475 and $52,100, with support at $45,814 and $43,200. Ethereum, on the other hand, may find resistance around the $3,000 mark as it continues its upward trajectory.
Outlook for Dogecoin
Substantial trading volume is expected to push Dogecoin to choose a direction from its current holding pattern. A move higher may encounter resistance at the 50-day simple moving average, while a drop could be cushioned by the 200-day SMA. The weekend could serve as a critical turning point for Dogecoin.
Overall, the cryptocurrency market is poised for an eventful weekend, with the performance of Bitcoin, Ethereum, and Dogecoin offering valuable insights into the sector’s momentum. Investors and traders are closely monitoring these cryptos as they navigate the complex and often unpredictable world of digital assets.
