Although consolidation is necessary, Bitcoin, Ethereum and Dogecoin are showing bearish signals over the long term. So what levels to watch for BTC, ETH and DOGE as we move forward over the weekend?
Neither bulls nor bears had the upper hand on the Dogecoin chart
Dogecoin (DOGE) broke out bearish from an inside bar pattern during Thursday’s session. Later on Friday, he tried to print another inside bar pattern. However, it fell slightly below Thursday’s low. That was enough to demoralize the eager bulls.
Just like in Bitcoin, in Dogecoin, the bulls and bears are in an intense battle at the psychologically important $0.6 level. If Dogecoin fails to regain the level as support, traders will want to see the $0.057 level for it to register a double bottom pattern in the region. Dogecoin has resistance above $0.063 and $0.07 and support below at $0.057 and $0.5.
With Dogecoin unstable, will BTC bounce back over the weekend?
On September 15, we saw one of the biggest events in Ethereum history. However, the crypto market generally follows the directional bias of Bitcoin. From an on-chain perspective, Bitcoin seems to have quite a few hurdles. For example, SOPR has been falling over the past few days. However, at the time of writing, it’s stuck at 0.9965, a one-month low. This indicator reveals the degree of profit realized for all cryptocurrencies carried. Values less than 1 usually mean that the coins carried are sold at a loss.
All in all, the current reading and the ongoing downtrend illuminate the dimming belief as participants left their Bitcoins at a loss.
Besides that, the realized BTC cap is also rolling off the cliff. As shown below, the indicator currently stands at the levels seen in October 2021. This metric represents the actual value of all cryptocurrencies in the network as opposed to market values. Thus, the current trend in gaming further supports the narrative of participants selling their Bitcoins at a loss.
If both of the aforementioned trends continue, it is difficult for Bitcoin to show a forward recovery, according to analyst Lavina Daryanani. Apart from the hurdles above, it is also worth noting that the Bitcoin market is in the middle of a liquidity crunch.
Low liquidity prevails in the Bitcoin market
Bitcoin’s low liquidity phase started about 4 months ago. The same is confirmed by looking at the state of the P&L indicator, which returns around 0.58. As shown below, an uptrend started on this front in early June. It also recorded a local peak by mid-August. However, the same situation could not continue for a long time and the P&L ratio started to decrease again.
According to analysts, metric statistics do not seem to be in favor of Bitcoin at the moment. As a result, it reduces the likelihood of a comeback for the weekend.
Ethereum deepens to $1,400 after merge
cryptocoin.comAs you follow, Ethereum price rejected the uptrend on Thursday. It then gradually printed new lows, confirming the downtrend. During Friday’s trading session, it reacted to the downside on the new downtrend on the daily chart. Melanie Schaffer identifies a range from $1,700 to $2,000 as the next technical resistance:
- On Friday afternoon, the bulls were trying to keep Ethereum above $1,400 and the bears were trying to bring it down, although it failed. Bulls will want to print a bullish reversal candlestick above the area to see this level hold and indicate that an upside bounce is on the horizon for Ethereum.
- Ethereum’s resistances are above $1,717.41 and $1,957.24. There is support below $1,421.80 and $1,245.
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