Bitcoin BTC/USD swung wildly between 9 a.m. and 10 a.m. after news broke that cryptocurrency platform FTX had filed for bankruptcy.
The volatility caused Ethereum ETH/USD and Dogecoin DOGE/USD follow the movement.
Between 09:00 and 09:30, Bitcoin plunged more than 5% before spending the next 30 minutes almost fully rebounding to the $17,267 level. Since then, Bitcoin has consolidated volatility over shorter timeframes, settling in a tighter range on the 15-minute chart.
Meanwhile, FTX founder and now former CEO Sam Bankman Fried announced his resignation from the company. It will be replaced by John Ray IIIwho, according to some reports, is the same person who oversaw the Enron Corporation bankruptcy.
Read more about Sam Bankman-Fried’s FTX debacle here.
The news is disappointing after consumer price index (CPI) data released by the US Bureau of Labor Statistics Thursday morning, inflation fell in October, standing at 7.7% against an estimate of 8%.
The news gave the crypto sector a boost and pushed Bitcoin higher from its nearly two-year low. Ethereum and Dogecoin rebounded in unison during Thursday’s 24-hour trading session, rising 17% and 20% respectively from Wednesday’s lows.
Despite Friday’s 24-hour trading session slowing, Bitcoin, Ethereum, and Dogecoin continue to trade in an inside bar pattern on the daily chart, which is tilting slightly bullish as Friday’s candlesticks print near the top of the daily chart. Thursday forks.
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The Bitcoin chart: Bitcoin was printing an inside double bar on Friday, with all of the price action of the past 48 hours taking place within Wednesday’s trading range.
On shorter timeframes, Bitcoin’s range has declined, indicating that a breakout or decline from Wednesday’s mother bar could occur over the weekend.
There is a chance that Bitcoin could continue to trade inside bar patterns and possibly set up a bear flag pattern, with the pole formed on Tuesday and Wednesday and the flag forming since then. If the pattern is recognized and Bitcoin falls off the flag on above-average volume, the measured move is around 23%, suggesting the crypto could drop towards $14,000.
If Bitcoin breaks away from Wednesday’s parent bar on above-average volume, the potential bearish flag will be negated as the crypto will regain the eight-day exponential moving average (EMA) as support. If this happens, Bitcoin may find the next level of resistance at the 50-day simple moving average (SMA).
Bitcoin has resistance above $17,580 and $19,915 and support below $16,000 and $15,000.
The Ethereum chart: Like Bitcoin, Ethereum trades in an inside double bar pattern. Ethereum is also holding above a significant falling trend line on the daily chart, which the crypto broke on October 25, which is bullish.
Ethereum was trying to print a hammer candlestick on Friday, with a substantially lower wick. This indicates that there are buyers below the $1,250 level and makes a break with the inside bar more likely.
Ethereum has resistance above $1,412 and $1,717 and support below at $1,245 and $1,081.
The Dogecoin Chart: Dogecoin is trading in a single inside bar pattern and is holding above the 200-day SMA, which the crypto recovered on October 28. When a stock or crypto trades above the 200-day SMA, it is considered to be in a bullish cycle.
If Dogecoin continues to trade above 200 days over the weekend, the 50-day SMA will cross above 200 days, causing a bullish golden cross to form. If the crypto is unable to significantly break out of the inside bar pattern, however, the eight-day EMA will move below the 21-day EMA, which could add further pressure from above.
Dogecoin has resistance above $0.083 and $0.099 and support below $0.075 and $0.065.
See also: If you had $10,000 right now, would you put it on Bitcoin, Ethereum or Dogecoin
Photo: Svetlana Parnikova via Shutterstock
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