Bitcoin (crypto: BTC), Ethereum (crypto: ETH) and dogecoin (Crypto: DOGE) are all trading higher in a strong uptrend. An uptrend occurs when a stock makes a series of consecutive highs and higher lows on the chart.
Higher highs indicate that the bulls are in control, while intermittent high lows indicate a consolidation period. Traders can use moving averages to help identify an uptrend in which a lower timeframe moving average (such as an eight-day or 21-day exponential moving average) is rising, indicating that the stock is in a short period. K is in an uptrend and is rising above the longer term moving average. (such as the 200-day simple moving average) indicating a longer-term uptrend.
A stock often signals when a high is high by printing a reversal candlestick such as the Doji, Bearish Engulfing or Hanging Man candlesticks. Similarly, a high low can be indicated when a Doji, Morning Star or Hammer candlestick is printed. In addition, higher highs and higher lows often occur at resistance and support levels.
In an uptrend “the trend is your friend” until it is not, and there are both bullish and bearish traders’ ways to participate in a stock in an uptrend:
- Bullish traders who already hold positions in a stock can feel confident that the uptrend will continue until the stock turns lower. Traders who take positions trading stocks in an uptrend can usually find the safest entry at the high low.
- Bearish traders can enter trades at higher highs and exit at pullbacks. These traders can also enter when the uptrend is broken and the stock turns lower, indicating that a reversal in a downtrend may be in the cards.
- See also: Ethereum Classic Soars on Reaction to Key Patterns, Miners Get Interested: Is a Golden Cross on the Way?
bitcoin chart: Bitcoin reversed in an uptrend on March 14 and March 16, breaking out of a descending channel pattern on the crypto daily chart. The most recent high low was printed on March 18th at $40,130 and the uptrend will continue if the crypto continues to trade above the level.
- On Sunday, bitcoin looked to print another higher low below the $42,223 resistance level. Traders and investors can look to further build confidence for the cryptocurrency to hold above the eight-day exponential moving average (EMA).
- On Sunday, the retracement was trading with below average volume, which is a positive sign for the bulls. As of late afternoon, bitcoin’s volume was around 6,075, while the average 10-day volume was 15,176. When a security moves at a volume below average, it indicates that healthy consolidation is taking place.
- There is resistance for bitcoin at $45,814 and $48,475 above $42,223 and support at $39,600 and $38,105.
Want direct analysis? Find me at BZ Pro Lounge! Click here for a free trial.
Ethereum Chart: Like Bitcoin, Ethereum reversed a possible uptrend on March 14 and broke out of a descending triangle the following day. Ethereum has not printed a high/low to confirm the trend, but may be in the process of printing it on Sunday.
- Ethereum may also settle in a bull flag pattern on the daily chart, with the pole between March 14 and March 18 and the flag will begin to form in the days after that. The measured move of the pattern, if the bull flag is recognized, is around 18%, which indicates that Ethereum could trade towards the $3,300 level.
- Ethereum is facing resistance above $2,890 and $3,057 and support near $2,609 and $2,461.
Dogecoin Chart: Dogecoin reversed in an uptrend on March 14 and made its most recent high on Friday at the level of $0.114, with its most recent high being printed on Saturday at $0.125.
- Like Bitcoin and Ethereum, Dogecoin could print its next high on Sunday. Alternatively, Dogecoin could tumble down to test the upper descending trendline of a falling channel pattern on Monday, with the crypto breaking out sharply since Saturday.
- If Dogecoin stays above the pattern and forms a bullish reversal candlestick on Monday, it could give traders that are not already in a position to have a solid entry point.
- Dogecoin is facing resistance above $0.135 and $0.146 and support is located at $0.106 and the important 10-percent psychological level.