The crypto sector was trading mixed during Friday’s 24-hour trading session, with Bitcoin (CRYPTO: BTC) holding near flat, Ethereum (CRYPTO: ETH) spiking up over 3% and Dogecoin (CRYPTO: DOGE) falling about 1.2%.
Bitcoin was trading in tandem with the general market, which saw the S&P 500 looking to close flat after Personal Consumption Expenditures (PCE) index inflation fell to its lowest point since March 2021 in November, increasing optimism the Federal Reserve will begin a rate cut campaign next year.
From a technical analysis standpoint, Bitcoin is consolidating its recent break up from a triangle pattern, while Ethereum was confirming the same bullish break on Friday. On Dec. 15, Benzinga noted the triangle patterns forming on the cryptos.
A symmetrical triangle pattern is created when a stock forms a series of lower highs and higher lows between a descending and an ascending trendline, which meet on the right side of the chart to form an apex. The pattern indicates that the bulls and bears are equally in control.
A symmetrical triangle is often formed on lower-than-average volume and demonstrates a decrease in volatility, indicating consolidation. The decreasing volume is often followed by a sharp increase in volume when the stock breaks up or down from the pattern, which should happen before the stock reaches the apex of the triangle.
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The Bitcoin and Ethereum Charts: Bitcoin broke up from the triangle pattern on Dec. 19 and began to trek north, while Ethereum broke up from its triangle on Friday. While the break-up from the pattern caused both cryptos to negate their downtrends, neither has confirmed a new uptrend with the formation of higher lows.
On Friday, Bitcoin was looking to form a second consecutive bearish reversal candlestick, which could indicate the local top has occurred and the crypto will retrace over the weekend. If that happens, bullish traders want to see Bitcoin reverse upward from the eight-day or 21-day exponential moving average (EMA).
Bullish Ethereum traders want to see Ethereum eventually enter into its own form of consolidation to avoid its relative strength index becoming overextended to the upside.
Bearish traders want to see big bearish volume come in and knock Bitcoin…
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