Bitcoin: BTC / USD fell more than 3% lower in Friday’s 24-hour trading session S&P 500:which was suffering a fourth straight day of decline with steep price declines.
Ethereum: ETH / USD and: Dogecoin: DOGE / USD were weaker than bitcoin, sliding about 5% below Thursday’s closing price.
The decline in the overall market and the crypto sector occurred after the Chairman of the Federal Reserve Chair Jerome Powell Wall Street crashed the party on Wednesday, predicting that inflation will remain stubbornly high in 2023 and the unemployment rate will reach more than 4%.
Ahead of the gloomy outlook, the market had rallied on weaker-than-expected consumer price index data that showed inflation had eased in November, sending Bitcoin and Ethereum higher. Dogecoin did not join the party and is down more than 24% since November 30th.
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Bitcoin table. Bitcoin’s decline on Thursday sent shares falling back into a sideways trading pattern that has held the crypto between $16,000 and $17,580 since Nov. 11. the day’s exponential moving averages, which were bearish at least in the short term.
Some soft support near $16,800 has been developed over the past month, and bullish traders would like to see Bitcoin close Friday’s session above that level. If this happens, Bitcoin could consolidate sideways into the upper range of the lateral channel over the weekend.
Bitcoin has high resistance at $17,580 and $19,915 and low support at $16,797 and $16,000.
Ethereum table. Ethereum broke out of a sideways channel on Friday, negating its current uptrend by printing lower lows. For the downtrend to be confirmed, Ethereum must eventually bounce to at least print a lower high on the 24-hour chart.
Unlike Bitcoin, which was trading on declining volume, Ethereum’s decline came on the back of increasing volume, a bad sign for bulls. Eventually, Ethereum will likely enter a consolidation phase and start trading sideways. If this happens, bullish traders would like to see the crypto print a series of candlesticks with lower bars to indicate that a rally may be taking place.
Ethereum has resistance above $1,245 and $1,412 and support below $1,081 and $997.
Dogecoin chart. Dogecoin’s bearish trend took place between two parallel lines that set the crypto in a bearish wave pattern on the 24-hour chart. The pattern is considered bearish until the stock or crypto breaks above the upper downtrend line of the channel with above average volume.
On Friday, Dogecoin was testing the lower trendline of the channel and breaking above the level. If Dogecoin continues to drop within the channel, bullish traders would like to see the crypto bounce off the 200-day SMA if Dogecoin returns to that area.
Dogecoin has resistance above $0.083 and $0.091 and support below $0.075 and $0.07.
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