The Impact of Bitcoin, Ethereum, and Dogecoin on the Stock Market Prior to Fed Rate Decision: Analyzing the Cryptocurrencies’ Performance Leading into the Weekend
Bitcoin and Ethereum saw a slight increase of around 1% during Friday’s trading session, despite initially experiencing a downturn. This was a weaker performance compared to the general market, with the S&P 500 rising about 0.5% following mixed jobs data from the US Labor Department. Dogecoin also experienced a 1% increase in line with the top cryptocurrencies.
The market is anticipating that the Federal Reserve will resume raising interest rates when it meets later this month. This could be seen as bullish for the cryptocurrency sector and potentially bearish for the stock market. Currently, Bitcoin and Ethereum are consolidating sideways with lower-than-average trading volume, suggesting that a significant move in one direction may be on the horizon. Traders are waiting on the sidelines until the future direction is determined.
Bitcoin and Ethereum have been trading sideways since June 22, after experiencing significant increases between June 15 and June 21. Both cryptocurrencies reached their respective tops, with Bitcoin at around $31,500 and Ethereum at around $2,000. Despite some single-day volume spikes, overall volume has been declining, indicating a low level of interest. This could be followed by a surge in volume that will help determine if Bitcoin and Ethereum will continue their bullish cycles or if a downturn is imminent.
Bitcoin has resistance levels at $31,418 and $35,593, with support levels at $30,050 and $28,690. While Ethereum has resistance levels at $1,937 and $2,150, with support levels at $1,825 and $1,717.
Dogecoin, like Bitcoin and Ethereum, has been trading mostly sideways but above a descending trendline. The crypto broke up from this trendline on July 1 and is currently trading below the 200-day moving average with declining volume, indicating consolidation. Bullish traders are hoping for a surge in bullish volume to drive Dogecoin above the 200-day moving average and signal a longer-term bull market. On the other hand, bearish traders want to see the crypto break down below the descending trendline, which could continue pushing it lower.
Dogecoin faces resistance levels at $0.069 and $0.075, with support levels at $0.065 and $0.057.
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