Bitcoin (CRYPTO: BTC) was dropping by about 2.5% on Friday, in tandem with the S&P 500, which was retracing after data released by the University of Michigan indicated growing expectations in May that inflation will remain stubborn.
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Ethereum (CRYPTO: ETH) and Dogecoin (CRYPTO: DOGE) were also trading slightly down but on lower-than-average volume, which indicates the local bottom may be in.
Traders and investors can watch the crypto sector, specifically Bitcoin and Ethereum, over the weekend to gather information on how the stock market will open on Monday. Historically, when Bitcoin and Ethereum behave bullishly on Saturday and Sunday, the stock market often opens higher.
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Here’s a look at the three cryptos’ charts heading into the weekend.
- The Bitcoin Chart: Bitcoin broke down bearishly from a triangle pattern on May 8, which set the crypto into a downtrend. Bitcoin’s most recent lower high within the trend was formed on Wednesday at $28,334 and the most recent lower low was printed at the $27,279 mark on Monday.
- On Thursday, Bitcoin printed a bearish Marubozu candlestick, which suggested lower prices would come during Friday’s trading session. If the crypto closes near its low-of-day, Bitcoin will print a second consecutive bearish Marubozu candlestick, which could indicate lower prices will come again on Saturday.
- Bullish traders want to see the crypto eventually form a bullish reversal candlestick, such as a doji or hammer candlestick, which could indicate a bounce is in the cards, at least to form another lower high.
- Bitcoin has resistance above at $27,113 and $28,690 and support below at $25,772 and $25,288.
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The Ethereum Chart: Ethereum entered a downtrend on May 6 and printed a lower high on Wednesday at $1,888 and a lower low at the $1,810 mark on May 8. On Friday, Ethereum was working to print a hammer candlestick, which could indicate the next lower low has occurred and the crypto will trade higher on Satuday.
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- Ethereum’s lower-than-average volume on Friday also indicates a bounce is on the horizon because the bears are becoming tired. If the bulls gain momentum and push Ethereum up over the 50-day simple moving average, it could indicate a trend reversal is in the cards.
- Ethereum has resistance above at $1,846 and $1,957 and support below at $1,717 and $1,564.
The Dogecoin Chart: Dogecoin confirmed a new downtrend on Wednesday, when the crypto printed a lower high of $0.074 and the most recent confirmed lower low was formed at the 7-cent mark on Monday.
- During Friday’s 24-hour trading session, Dogecoin was working to print an inside bar pattern, with all of its price action taking place within Thursday’s trading range. The pattern leans bearish in this case, but traders can watch for the crypto to break up or down from Thursday’s mother bar on higher-than-average volume to gauge future direction.
- Like Ethereum, Dogecoin was working to print a hammer candlestick on Friday, which suggests the local bottom may have occurred.
- Dogecoin has resistance above at $0.075 and $0.083 and support below at $0.07 and at $0.065.
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