The cryptocurrency sector was largely consolidating during Friday’s 24-hour trading session, with Bitcoin BTC/USD, Ethereum ETH/USD and Dogecoin DOGE/USD forming two separate bullish patterns on the daily chart.
The three cryptos have been enjoying a strong bull cycle so far this year, with Bitcoin skyrocketing about 46%, Ethereum surging over 50% and Dogecoin charging about 40% since 2025 began. The move higher across the sector was partly propelled by the SEC’s long-awaited decision to approve several spot Bitcoin ETFs and now appears to be front-running a potential approval of spot Ethereum ETFs.
The next Bitcoin halving, expected to occur in April, which takes place only every four years, also appears to be bullish for the crypto sector.
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The bullish price action in the sector has also caused Grayscale Bitcoin Trust GBTC to skyrocket, rising about 60% since this year began. Like Bitcoin, Ethereum and Dogecoin, GBTC was also consolidating on Friday, settling into both an inside bar pattern and a potential bull flag.
GBTC is a popular spot Bitcoin ETF because it is highly liquid, offering traders and investors a high level of flexibility to manage their trades, with an average 30-day trading volume of over 14,000 shares.
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The Bitcoin and Ethereum Charts: Between Feb. 24 and Feb. 28, Bitcoin and Ethereum surged 26% and 20%, respectively, before beginning to consolidate sideways. Over the last two days, the two apex cryptos have traded mostly sideways, settling Bitcoin and Ethereum into both bullish inside bar patterns and bull flag patterns on the 24-hour charts.
The measured move, If Bitcoin and Ethereum break up from the flag formations on higher-than-average volume to indicate the pattern was recognized, could take the cryptos toward the 77,000 and $4,235 marks, respectively.
The consolidation that has been taking place since Feb. 28 has allowed Bitcoin’s and Ethereum’s relative strength indexes (RSI) to cool down from about the 88% and 85% area, respectively. Bullish traders want to see continued consolidation help to drop the crypto’s RSI levels back toward the 70% mark, which could give them room for another significant rise in price.
Bearish traders want to see Bitcoin and Ethereum fall under the eight-day exponential moving average EMA), which would negate their bull flags and indicate longer-term consolidation toward lower prices is on the horizon.
Bitcoin has resistance above at $64,899 and at $66,999 and support below at $59,249 and $56,113.
Consolidation is needed for Dogecoin because its RSI is measuring in at about 87%, indicating the crypto is in heavily overbought territory. Dogecoin has also become heavily detached from the EMA, indicating the crypto is likely to retrace over the next few days.
Bullish traders want to see continued consolidation take place, allowing the eight-day EMA to catch up to the crypto’s price, and then for big bullish volume to come in and break Dogecoin up above Thursday’s high-of-day. Bearish traders want to wait for a sign that momentum in Dogecoin is waning and for the crypto to form a bearish reversal candlestick, such as a doji or shooting star candlestick.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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