![\"Ethereum](\"https:\/\/i-invdn-com.investing.com\/news\/LYNXMPEB0M0CA_L.jpg\")
\n\u00a9 Reuters. Ethereum And Dogecoin Suggest New Crypto Bull Cycle But Bitcoin Must Regain This Level: What To Watch<\/span>
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Benzinga – (CRYPTO: BTC) was spiking up more than 2% higher during Friday\u2019s 24-hour trading session, coming close to tagging the 200-day simple moving average (SMA) in tandem with the S&P 500<\/strong>, which was behaving similarly.<\/p>\n (CRYPTO: ETH) regained the 200-day SMA on Thursday and popped above the area on Monday.<\/p>\n The 200-day SMA is an important bellwether. Technical traders and investors consider a stock trading above the level on the daily chart to be in a bull cycle, whereas a stock trading under the 200-day SMA is considered to be in a bear cycle.<\/p>\n The 50-day SMA also plays an important role in technical analysis, especially when paired with the 200-day. When the 50-day SMA crosses below the 200-day SMA, a death cross occurs whereas when the 50-day SMA crosses above the 200-day, a bullish golden cross takes place.<\/p>\n While a golden cross occurred on Dogecoin\u2019s chart on Nov. 10, the 50-day SMA remains trending under the 200-day on Bitcoin and Ethereum\u2019s charts.<\/p>\n Want direct analysis? Find me in the BZ Pro lounge! Click here for a free trial.<\/p>\n The Bitcoin Chart:<\/strong> Bitcoin started trading in an uptrend on Dec. 30 and had since printed a few higher highs and higher lows on the daily chart. The most recent higher low was formed on Jan. 6 at $16,670 and the most recent confirmed higher high was printed on that same day at $17.027.<\/p>\n Since then, Bitcoin has surged almost 15% higher, without retracing to print a higher low. This indicated a retracement to the downside was likely on the horizon.<\/p>\n The crypto was also likely to trade lower or consolidate over the next few days because Bitcoin\u2019s relative strength index (RSI) was measuring in at about 84%. When a stock\u2019s or crypto\u2019s RSI reaches or exceeds the 70% level, it becomes overbought, which can be a sell signal for technical traders.<\/p>\n The consolidation or retracement was likely to come when Bitcoin reaches the 200-day SMA on the daily chart because it\u2019s a strong area of support and resistance.<\/p>\n Bitcoin has resistance above at $19,915 and $20,545 and support below at $18,835 and $17,580.<\/p>\n \nThe Ethereum Chart:<\/strong> Ethereum back tested the 200-day SMA as support during Friday\u2019s session and bounced up slightly from the area. If Ethereum can remain above the 200-day for a series of days, the 50-day SMA will cross above the 200-day, which would give bullish traders more confidence going forward.<\/p>\n Like Bitcoin, Ethereum was trading in a strong uptrend, with the most recent higher low formed on Jan. 6 at $1,234.20 and the most recent confirmed higher high created at $1,276.60 on the same day. Also, like Bitcoin, Ethereum hadn\u2019t printed a higher low in many trading sessions, which made a retracement likely.<\/p>\n Ethereum has resistance above at $1,421.80 and $1,564.17 and support below at $1,308.89 and $1,231.38.<\/p>\n \nThe Dogecoin Chart:<\/strong> Dogecoin had been trading in an uptrend since Dec. 30 and printed its most recent higher low on Thursday at $0.0.73 and its most recent higher high the day prior at $0.079. On Friday, Dogecoin was trading higher but on lower-than-average volume, which suggested a retracement might be in the cards.<\/p>\n Dogecoin was also working to print a doji candlestick. When a doji candlestick is created in an uptrend it can signal the temporary top is in. Dogecoin may need to consolidate under the 50-day SMA before gaining enough power to break up above the level.<\/p>\n Unlike Bitcoin and Ethereum, Dogecoin\u2019s RSI wasn\u2019t in overbought territory, which suggested the crypto had room to surge further without becoming overbought.<\/p>\n Dogecoin has resistance above at $0.083 and $0.091 and support below at $0.075 and $0.07.<\/p>\n \nRead Next: Dogecoin Finally Gets Twitter ‘Cashtag’ Price Index Support<\/p>\n Photo: KarbonatErol via Shutterstock<\/p>\n \u00a9 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.<\/i><\/p>\n