Cryptocurrency Update: Ethereum and Dogecoin Surpass Bitcoin Ahead of July Fourth Weekend
Bitcoin experienced volatility during Friday’s trading session, initially rising over 2% and then dropping over 3% before ending the day flat. Ethereum and Dogecoin, on the other hand, showed relative strength, both rising about 4% compared to Thursday’s closing prices. While the overall market has been on an uptrend since June 26, the crypto market has been consolidating sideways after significant gains by Bitcoin and Ethereum earlier in June. Bitcoin has surged 83% since the beginning of the year, while Ethereum has seen a 61% increase. However, Dogecoin is down 6% from its opening price on January 1.
Traders and investors will be closely watching the performance of these cryptocurrencies over the weekend as an indicator of how the stock market may behave after the Fourth of July holiday, when Wall Street resumes trading. In terms of technical analysis, Bitcoin formed a higher high on Friday, potentially indicating a new uptrend if it continues to trade higher on Saturday. However, there is also a bearish double top pattern that formed on June 23 and Friday, suggesting the possibility of lower prices. Bitcoin has resistance levels at $31,418 and $35,593, and support levels at $30,050 and $28,690.
Ethereum has been trading sideways, but on Friday it attempted to break out of the pattern. If it closes near its high-of-day, it could form a bullish Marubozu candlestick, indicating the potential for higher prices. Resistance levels for Ethereum are at $1,957 and $2,150, while support levels are at $1,846 and $1,717.
Dogecoin broke its downtrend on Friday by rising above the most recent lower high formed on Wednesday. It also attempted to form a hammer candlestick, suggesting the potential for higher prices ahead. If Dogecoin can break above a descending trend line that has been holding it down since June 23, it could signal a reversal to the upside. Resistance levels for Dogecoin are at $0.069 and $0.075, while support levels are at $0.065 and $0.057.
Overall, the weekend’s performance of these cryptocurrencies will provide insights for traders and investors, particularly in relation to the stock market’s behavior after the holiday weekend.
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