Analyst Melanie Schaffer says the Bitcoin, Ethereum and Dogecoin charts are developing new levels for short-term trades. Performing his analysis on daily candlesticks, Schaffer determined these technical levels for BTC, ETH and DOGE price:

BTC, DOGE, ETH and bar patterns:

An inside bar pattern indicates a period of consolidation and usually follows a continuation in the current trend direction. It also has more validity on larger timeframes (four saadollarsik or larger charts). The pattern has at least two candlesticks and consists of a main (the first candlestick in the pattern) followed by one or more consecutive candlesticks. The next candle(s) must be completely within the range of the main bar and each is called an “inside bar”.

A double or triple inside bar can be stronger than a single inside bar. After an inside bar pattern is broken, traders want to watch high volume as confirmation that the pattern is recognized. Schaffer explains bull and bear psychology:

  • Bull traders, uptrend cryptos, will want to look for inside bar patterns. Some traders may take positions on the inside bar before the breakout, while other aggressive traders will take positions after the pattern is broken.
  • For bearish traders, finding an inside bar formation in a downtrend crypto will be key. Like the bulls, the bears have two options for where to take a position to play the breakout of the pattern. For the bearers, the pattern will be invalid if the cryptocurrency rises above the high range of the main candle.

Bitcoin technical analysis

The Bitcoin chart was recording an “inside bar” just above a support level of $42,223 on the daily chart. BTC is trading in a short uptrend within a larger downtrend. Bitcoin will have to climb higher above the $55,200 level to confirm the end of the downtrend.

Dogecoin (DOGE) technical analysis

Dogecoin (DOGE) is trading in a steep downtrend but it is holding above the key $0.197 support level. The inner bar of DOGE price on Saturday shows consolidation. If Dogecoin loses support at the key level, it could decline towards the $0.16 level.

Ethereum technical analysis

Like Bitcoin, Ethereum may be working its way to an uptrend, but it will need to climb above Thursday’s high of $3,182 for confirmation. Otherwise, the crypto could continue the larger downtrend lower following Saturday’s inside bar.

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Michael Lewis


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