A Look At Bitcoin, Ethereum And Dogecoin Into The Weekend As Stock Market Turns Lower – ProShares Trust Ultra VIX Short Term Futures ETF (BATS:UVXY), ConvexityShares Trust ConvexityShares Daily 1.5x SPIKES Futures ETF (ARCA:SPKY)
BitcoinBTC/USD was trading near flat during Friday’s 24-hour trading session, while Ethereum ETH/USD and DogecoinDOGE/USD were trading in tandem with the apex crypto following jobs data released by the U.S. Labor Department.
Non-farm payrolls showed a gain of 187,000 jobs last month, below the expected 200,000 figure, while the unemployment rate dropped back to 3.5%. The numbers and how they compare to data for August will help the Federal Reserve to decide whether to continue hiking interest rates in September after reinstating its tightening campaign in July.
The S&P 500 rose at one point on Friday, reacting positively to the data, before bearish pressure came in and dropped the market ETF down under Thursday’s low-of-day. In comparison, the crypto market remained muted, mostly consolidating sideways. The consolidation could continue over the weekend, but if Bitcoin breaks up or down from Wednesday’s mother bar, a larger move to the upside or downside could be on the horizon.
If the general market continues to slide next week, volatility in the stock market is likely to increase.
Traders wishing to trade the potential volatility have multiple options, including the ConvexityShares Daily 1.5x SPIKES Futures ETFSPKY.
SPKY is a 1.5x leveraged fund, which tracks the SPIKES Futures Short-Term Index and measures volatility in broad-based equities in a similar way to the ProShares Ultra VIX Short Term Futures ETFUVXY, which tracks the movement of the S&P 500 VIX Short-Term Futures Index.
For every 1% daily movement in the SPIKES Futures Short-Term Index, the SPKY fund seeks to move 1.5%, meaning that it’s structured for short-term trades and should not be held for a long period of time.
The Bitcoin and Ethereum Charts: Bitcoin and Ethereum have settled into double inside bar patterns on the daily chart, with all of Thursday’s and Friday’s price action taking place within Wednesday’s trading range. Traders can watch for the apex cryptos to eventually break up or down from the mother bar on higher-than-average volume to gauge future direction.
Bitcoin and Ethereum are trading in fairly consistent but shallow downtrends, making a series of lower and lower highs. If big bearish volume eventually enters the cryptos and they continue the downward trajectory, each could eventually test support at the 200-day simple moving average (SMA).
If the cryptos break up from their respective mother bars, the downtrends are likely to be negated and the cryptos could enter into new uptrends.
Bitcoin has resistance above at $30,050 and at $31,418 and support below at $28,690 and at $27,133.
Ethereum has resistance above at $1,937 and at $2,020 and support below at $1,825 and at $1,717.
The Dogecoin Chart: On Wednesday, Dogecoin fell through the bottom horizontal trend line of a descending triangle pattern and lost support at the 200-day SMA, which is bearish. On Thursday, Dogecoin fell lower and on Friday, the crypto was consolidating with an inside bar pattern.
In Dogecoin’s case, the inside bar leans bearish because the crypto has been trading steeply lower, but like with Bitcoin and Ethereum, traders can watch for a break up or down from Thursday’s mother bar on higher-than-average volume to determine future direction,
Dogecoin has resistance above at $0.075 and $0.083 and support below at $0.07 and $0.065.
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