Bitcoin, Ethereum, and Dogecoin Consolidate Sideways with Potential for a Major Move

Bitcoin, Ethereum, and Dogecoin Consolidate Sideways with Potential for a Major Move

Bitcoin and Ethereum have been experiencing a period of sideways trading with relatively low trading volumes. Similarly, Dogecoin has been trading sideways but managing to hold above a descending trend line.

During Friday’s 24-hour trading session, Bitcoin saw a slight increase of about 1%, which in turn pulled Ethereum up by a similar amount, despite an initial downturn. However, these upward movements were relatively weaker compared to the broader market, as the S&P 500 experienced a rise of around 0.5% following the release of mixed jobs data by the U.S. Labor Department.

In parallel, Dogecoin also witnessed a 1% increase, aligning with the performance of the leading cryptocurrencies. The market is currently anticipating the Federal Reserve’s potential decision to resume raising interest rates later this month. Such a move could have a bullish impact on the cryptocurrency sector while potentially bearing negative implications for the stock market.

With Bitcoin, Ethereum, and Dogecoin consolidating sideways on lower-than-average volumes, it suggests the possibility of a significant move in one direction on the horizon. In the meantime, the low volumes indicate that traders are currently sitting on the sidelines, awaiting a clearer market direction before taking positions.

Analyzing the Bitcoin and Ethereum charts, both cryptocurrencies have been trading sideways since June 22, following a substantial rise between June 15 and June 21. During that period, both cryptos experienced a rebound from near the 200-day simple moving average, with Bitcoin reaching close to the $31,500 mark and Ethereum nearing $2,000.

Although occasional volume spikes have occurred, the overall trend has been declining, signaling a low level of interest in these cryptocurrencies. Typically, decreasing volumes are followed by a surge in volume, which will eventually provide insights into whether Bitcoin and Ethereum will continue their bullish cycles or face a potential downturn.

For Bitcoin, resistance levels can be observed at $31,418 and $35,593, while support levels exist at $30,050 and $28,690.

As for Ethereum, resistance levels are identified at $1,937 and $2,150, with support levels at $1,825 and $1,717.

Turning to the Dogecoin chart, the cryptocurrency has been trading sideways like Bitcoin and Ethereum but has managed to stay above a descending trend line that was broken on July 1. Dogecoin is currently trading below the 200-day simple moving average, accompanied by declining volumes, indicating a period of consolidation.

Bullish traders are hopeful for a significant increase in bullish volume that could propel Dogecoin above the 200-day SMA, potentially signaling the onset of a longer-term bull cycle. Conversely, bearish traders would prefer to see a breakdown below the descending trend line, which could continue to push the crypto lower.

For Dogecoin, resistance levels lie at $0.069 and $0.075, while support levels are found at $0.065 and $0.057.