Bitcoin BTC/USD fell more than 3% during Friday’s 24-hour trading session coinciding with the S&P 500which suffered a fourth straight bearish day with prices plummeting.
Ethereum ETH/USD and Dogecoin DOGE/USD were weaker than Bitcoin and fell about 5% below Thursday’s closing price.
The downturn in the general market and the crypto sector came after the chairman of the Federal Reserve Jerome Powell the Wall Street party crashed Wednesday with predictions that inflation would remain stubbornly high in 2023 and the unemployment rate would rise to more than 4%.
Ahead of the gloomy outlook, the market rallied on weaker-than-expected consumer price index data that showed inflation ticking lower in November, pushing Bitcoin and Ethereum higher. Dogecoin did not join the party, dropping more than 24% since November 30.
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The Bitcoin Chart: Bitcoin’s decline on Thursday caused the stock to revert to a sideways trading pattern that has held the cryptocurrency between $16,000 and $17,580 since Nov. 11. day exponential moving averages, which was bearish at least for the short term.
Some mild support near the $16,800 pattern developed over the past month and bullish traders would like to see Bitcoin close Friday’s session above that level. If that happens, Bitcoin could consolidate sideways in the upper range of the sideways channel over the weekend.
Bitcoin has resistance above $17,580 and $19,915 and support below $16,797 and $16,000.
The Ethereum Chart: Ethereum broke out of a sideways channel on Friday, negating its current uptrend by printing a lower low. To confirm a downtrend, Ethereum should 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 increasing volume, which was a bad sign for the bulls. Eventually, Ethereum would likely enter a consolidation phase and start trading sideways. If that happens, bullish traders would want to see the crypto print a series of lower wick candlesticks to indicate that accumulation may be taking place.
Ethereum has resistance above $1,245 and $1,412 and support below $1,081 and $997.
The Dogecoin Chart: Dogecoin’s downtrend occurred between two parallel lines, sending the crypto into a descending channel pattern on the 24-hour chart. The pattern is considered bearish until a stock or crypto breaks above the channel’s upper descending trendline at higher-than-average volume.
On Friday, Dogecoin tested the channel’s lower trendline and bounced up from the level. If Dogecoin continues to trend lower within the channel, bullish traders will want to see the crypto bounce off the 200-day SMA as 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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