Dogecoin – US dollars (CRYPTO: $ DOGE), Bitcoin – US dollars (CRYPTO: $ BTC) – Bitcoin, Ethereum, Dogecoin set up trades for bulls and bears: how to play the cryptos
Bitcoin (CRYPTO: BTC), ether (CRYPTO: ETH) and Dogecoin (CRYPTO: DOGE) are all trading higher in strong uptrends. An uptrend occurs when a stock or crypto consistently makes a series of higher highs and higher lows on the chart.
The higher highs indicate the bulls are in control while the intermittent higher lows indicate periods of consolidation. Traders can use moving averages to identify an uptrend, with rising moving averages in the lower frame (z (like the 200 day simple moving average) indicating a long term uptrend.
A stock or crypto often signals when the higher high has been reached by printing an reversal candle such as a Doji, Bearish Engulfing, or Hanging Man Candlestick. Likewise, the higher low could be signaled when a doji, a morning star or a hammer candle is printed. In addition, the higher highs and higher lows often take place at resistance and support levels.
In an uptrend, the “trend is your friend” is until it isn’t, and in an uptrend, there are ways for both bullish and bearish traders to participate in trading:
- Bullish traders who already hold a position in a stock or crypto can be confident that the uptrend will continue unless the stock hits a lower low. Traders looking to take a position in a stock or a crypto trade in an uptrend can get in and usually find the safest way to get in at the higher low.
- Bearish traders can enter the trade on the higher high and exit on the pullback. These traders can also get in if the uptrend breaks through and the stock or crypto hits a lower low, indicating that a reversal into a downtrend is in sight.
See also: If you had $ 1,000 now, would you bet it on Axie Infinity or Dogecoin?
The Bitcoin Chart: Bitcoin printed its final higher low at the $ 58,943 mark on October 17, then rebounded, hitting an all-time high of $ 66,999 on October 20. Since that date, Bitcoin has consolidated down on the daily chart, but has not hit a lower lows. The lower wicks on the candle on Saturday and Sunday may indicate the higher low is at $ 59,522, and if so, bullish traders should watch out for Bitcoin to shoot up and hit a new all-time high. If Bitcoin falls below the daily low on October 17th, the uptrend will be null and void.
The Ethereum Chart: Ethereum has been trading in a strong uptrend since it broke bullish from a pennant pattern on September 30th. The crypto has made a constant series of higher lows and higher highs, with the last higher low printing on October 22nd at $ 3,885 and most of the previous higher high at Ethereum’s all-time high of $ 4,384. On Sunday, Ethereum traded lower but held above a key support level of $ 4,000. The sideways consolidation has helped cool the relative strength index (RSI) of crypto, which, like Bitcoin’s, ran uncomfortably high as each crypto hit new all-time highs.
The Dogecoin Chart: On Sunday, Dogecoin attempted to hit another higher high above the October 18 high of $ 0.272. The crypto printed its final higher low at the $ 0.234 level on Friday. When Dogecoin can’t make another higher high, it can level off in a narrowing area, making a series of lower highs and higher lows. On Sunday, the volume of Dogecoin was much higher than average, which indicates a high level of investor interest and, in this case, favors an upward movement.
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