Bitcoin, Ethereum And Dogecoin Provide Trade For Bulls And Bears As This Key Trend Confirms

Bitcoin, Ethereum and Dogecoin are all trading higher in strong uptrends. An uptrend occurs when a stock consistently makes a series of higher highs and higher lows on the chart.

The higher highs indicate the bulls are in control, while the intermittent higher lows indicate consolidation periods. Traders can use moving averages to help identify an uptrend, with rising lower timeframe moving averages (such as the eight-day or 21-day exponential moving averages) indicating the stock is in a steep shorter-term uptrend and rising longer-term moving averages (such as the 200-day simple moving average) indicating a long-term uptrend.

A stock often signals when the higher high is in by printing a reversal candlestick such as a doji, bearish engulfing or hanging man candlestick. Likewise, the higher low could be signaled when a doji, morning star or hammer candlestick is printed. Moreover, the higher highs and higher lows often take place at resistance and support levels.

In an uptrend the "trend is your friend" until it’s not, and in an uptrend there are ways for both bullish and bearish traders to participate in the stock:

• Bullish traders who are already holding a position in a stock can feel confident the uptrend will continue unless the stock makes a lower low. Traders looking to take a position in a stock trading in an uptrend can usually find the safest entry on the higher low.
• Bearish traders can enter the trade on the higher high and exit on the pullback. These traders can also enter when the uptrend breaks and the stock makes a lower low, indicating a reversal into a downtrend may be in the cards.
• See Also: Ethereum Classic Soars On Reaction To Key Pattern, Miners Gain Interest: Is A Golden Cross On The Way?

The Bitcoin Chart

Bitcoin reversed into an uptrend on March 14 and March 16, the crypto broke up from a descending channel pattern on the daily chart. The most recent higher low was printed on March 18 at $40,130 and if the crypto continues to trade above the level the uptrend will remain intact.

• On Sunday, Bitcoin looked to be printing another higher low under a resistance level at $42,223. Traders and investors can watch for the crypto to hold above the eight-day exponential moving average (EMA) on the pullback for confidence going forward.
• The retracement on Sunday was being made on lower-than-average volume, which is a positive sign for the bulls. By late afternoon, Bitcoin’s volume was measuring in at about 6,075 compared to the average 10-day volume of 15,176. When a security moves lower on lower-than-average volume, it indicates healthy consolidation is taking place.
• Bitcoin has resistance above the $42,223 level at $45,814 and $48,475 and support below at $39,600 and $38,105.

(Click on image to enlarge)