What To Watch For On Saturday And Sunday As Bitcoin, Ethereum, And Dogecoin Consolidate Before The Weekend
Bitcoin and gold both settled into inside bar patterns on the daily chart on Friday, which indicates consolidation. Ethereum and Dogecoin followed suit, forming the same pattern. The S&P 500, however, registered a 0.6% spike. The inside bar pattern requires at least two candlesticks, with the subsequent candles completely inside the mother bar. If traders see a high volume after the break of the pattern, it will confirm the pattern was recognised. Bitcoin formed a rounded-bottom pattern from April 20 and began rebounding from April 26, eventually settling into a double inside bar pattern. Ethereum was also forming a double inside bar, while Dogecoin had reached the previous support at the 50-day SMA. If Dogecoin breaks up from the pattern, bullish traders can expect it to regain the 200-day SMA as support. However, the crypto will require much more volume for this to occur. Dogecoin has resistance above at $0.083 and $0.091 and support below at $0.075 and at seven cents. Ethereum and Bitcoin have quite similar price action, and traders can watch the break of the pattern on higher-than-average volume on the weekend to indicate future direction. Ethereum has resistance above at $1,957 and $2,150, and support below at $1,846 and $1,717. Bitcoin has resistance above at $31,418 and $35,593, and support below at $28,690 and $25,772.
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