Bitcoin (BTC), Ethereum (ETH) and Dogecoin (DOGE) have moved into a bear flag formation on the daily chart. The bear flag begins with a steep drop forming the pole, followed by a consolidation that brings it higher between parallel lines or a channel with a tightening triangle. Analyst Melanie Schaffer identifies the critical levels the formation will follow. Analyst’s comments cryptocoin.com compiled for our readers.
These levels are critical for Bitcoin
Bitcoin is currently trading in a short-term uptrend, with a consistent series of HH and HL levels being recorded since Jan. The uptrend, along with the 21% drop between January 20 and January 22, has placed Bitcoin in a possible bearish pattern. On Saturday, Bitcoin was rejecting the eight-day EMA, which kept the bear flag from rejecting it. Schaffer identifies resistance areas above $38,105 and $39,600 and support areas below $35,593.22 and $32,200.
As for the Ethereum chart, like Bitcoin, ETH has been trading in an uptrend since January 24, accompanied by a series of HH and HL levels. The uptrend, paired with a 34% drop from Jan 20 to Jan 24, has placed Ethereum in a possible bear flag formation. On Saturday, Ethereum was attempting to reject the flag by regaining support at the eight-day EMA. The analyst identifies critical technical levels:
Ethereum has resistance above $2,609.02 and $2,890 and support below $2,461.63 and $2,317.64.
DOGE technical analysis
Dogecoin’s chart has settled into a bear flag formation, similar to both Bitcoin and Ethereum in that it has been trading in an uptrend since Jan. DOGE’s pattern needs to regain the eight-day EMA to break out of the downside, but the lower-than-average volume is keeping it from doing so, according to the analyst. If Dogecoin breaks below the lower ascending trendline of the flag formation at a higher-than-average volume, the bear flag will be confirmed.
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