Dogecoin DOGE/USD was trading more than 4% lower at one point on Friday in sympathy with Bitcoin BTC/USD and the S&P 500, which were falling 4% and 1.7%, respectively, in yet another bearish day for the markets.
As of press time, Dogecoin was holding above Thursday’s low-of-day and because the crypto didn’t rise above Thursday’s high-of-day, it has settled Dogecoin into an inside bar pattern.
An inside bar pattern indicates a period of consolidation and is usually followed by a continuation move in the direction of the current trend.
An inside bar pattern has more validity on larger time frames (four-hour chart or larger). The pattern has a minimum of two candlesticks and consists of a mother bar (the first candlestick in the pattern) followed by one or more subsequent candles. The subsequent candle(s) must be completely inside the range of the mother bar and each is called an "inside bar."
A double, or triple inside bar can be more powerful than a single inside bar. After the break of an inside bar pattern, traders want to watch for high volume for confirmation the pattern was recognized.
Want direct analysis? Find me in the BZ Pro lounge! Click here for a free trial.
The Dogecoin Chart: Dogecoin’s inside bar pattern is neutral in this case because the crypto has been trading mostly sideways since falling bearishly from a triangle pattern Wednesday. Traders and investors can watch for a break up or down from Thursday’s mother bar later on Friday or on Saturday to gauge future direction.
doge_may_20.pngSee Also: After Jeff Bezos, Elon Musk Calls Dogecoin Creator 'Wise'
Visit Benzinga’s Crypto Homepage1,000,000+ depend on Benzinga Crypto every month
© 2022 Benzinga does not provide investment advice. All rights reserved.


Write A Comment