Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH) and Dogecoin (CRYPTO: DOGE) were sliding on Sunday as inflation fears, the likelihood of rising interest rates and Ukraine/Russia news continued to weigh on the minds of investors.
For a few short weeks between about Jan. 24 and Feb. 10 the cryptocurrency market, as well as the general markets, began to rebound, which was welcomed by bullish investors who had watched the crypto sector, specifically, enter into a long-term downtrend that began on Nov. 10. The reversal to the upside looks more and more as though it was merely a relief bounce. As of Sunday Bitcoin, Ethereum and Dogecoin have given up most of their 2022 gains.
With trading, assets never drop in a straight line just like they never go up in a straight line and although the three cryptos are trading lower there are pivot points on their charts where at least a bounce to the upside is likely to take place.
The Bitcoin Chart: Bitcoin was falling almost 5% lower on Sunday on fairly high volume, which indicates the break-down Friday from a rising channel may have now been recognized.
- Bitcoin may fall to back test a descending trendline which the crypto broke up through on Feb. 3. The area may provide a pivot back to the upside in the future.
- Bitcoin has resistance above at $39,600 and $42,233.66 and support below at $38,105 and $35,993.22.
Want direct analysis? Find me in the BZ Pro lounge! Click here for a free trial.
The Ethereum Chart: On Sunday, Ethereum was back testing support at a descending trendline, which Benzinga called out on Friday. As of early afternoon, the area was providing support and the crypto was bouncing up from the level.
- Bullish traders can watch to see if Ethereum prints a reversal candlestick above the trendline, which would indicate a bounce to the upside is likely in the cards.
- Bearish traders can watch to see if Ethereum breaks below the trendline on higher-than-average volume, which could indicate an accelerated move to the downside.
- Ethereum has resistance above at $2,890 and $3,057.82 and support below at $2,609.02 and $2,461.63.
The Dogecoin Chart: After spiking up briefly on Saturday, Dogecoin was trading lower again on Sunday, but holding above a key support zone at $0.135. The test of the area was slightly below the Feb. 18 low-of-day, which indicates the crypto is still trading in a downtrend.
- Bullish traders can watch to see if Dogecoin prints a reversal candlestick above the level, which could indicate a bounce is on the way. Traders would then want to see Dogecoin rise up above Saturday’s high-of-day at the $$0.147 level.
- Bearish traders want to see Dogecoin break below $0.135, which could see the crypto quickly fall toward a lower support at 12 cents.
- See Also: How To Buy Dogecoin • The People’s Currency
Read More: Dogecoin, Bitcoin, Ethereum Are Sliding, But Here’s Where The Cryptos