Bitcoin, Ethereum and Dogecoin consolidate ahead of the weekend: What to watch on Saturday, Sunday
Bitcoin BTC/USD consolidated during Friday’s 24-hour trading session, in line with spot gold, which traded flat.
The top of the cryptocurrency and gold settled into bar patterns on the daily chart, while Ethereum ETH/USD and Dogecoin DOGE/USD followed and formed the same consolidation pattern.
In contrast, the general market rose higher, with S&P 500 climbing around 0.6%.
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 candles must be completely within the range of the mother bar, and each of them is called an “inside bar”.
A double or triple inner rod can be stronger than a single inner rod. After the break of an inside bar pattern, traders want to look for high volume to confirm that the pattern was recognized.
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The Bitcoin Chart: Bitcoin started to recover on April 26th after forming a rounded bottom pattern from April 20th. On Thursday and Friday, Bitcoin formed a double inside bar pattern to consolidate the decline.
Traders and investors can look for the crypto to break up or down from Wednesday’s mother bar on higher-than-average volume over the weekend to indicate future direction. The consolidation pattern is bullish because the crypto traded higher earlier.
Bitcoin has resistance above at $31,418 and $35,593 and support below at $28,690 and $25,772.
The Ethereum Chart: Like Bitcoin, Ethereum worked to print a double inside bar pattern on Friday, with the last two days of price action taking place within Wednesday’s range. Like Bitcoin, Ethereum’s inside line is slightly bullish, but traders can look for a break in the pattern on higher-than-average volume.
If Ethereum breaks down from Wednesday’s mother bar, bullish traders could look for the crypto to reverse and bounce off the 50-day simple moving average (SMA), which has served as support since April 24.
Ethereum has resistance above at $1,957 and $2,150 and support below at $1,846 and $1,717.
The Dogecoin Chart: Dogecoin also printed a double inside bar pattern on Friday and held above the support at the 50-day SMA. If Dogecoin breaks out of the pattern, bullish traders will want to see the crypto reclaim the 200-day SMA as support.
For Dogecoin to regain that level, much more volume will be needed. Dogecoin has recently been trading on lower than average volume, indicating a current lack of interest in the crypto.
Dogecoin has resistance above at $0.083 and $0.091 and support below at $0.075 and at 7 cents.
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