Bitcoin, Ethereum and Dogecoin Consolidate Ahead of the Weekend: What to Watch for Saturday, Sunday

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Bitcoin (CRYPTO:BTC) was consolidating during Friday’s 24-hour trading session, in tandem with spot gold, which was trading flat.

The cryptocurrency at the top and gold settled into inside bar patterns on the daily chart, while Ethereum (CRYPTO:ETH) and Dogecoin (CRYPTO:DOGE) followed suit, forming the same pattern of consolidation.

In contrast, the broader market was up, with the S&P 500 climbing about 0.6%.

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An inside bar pattern has more validity over longer time frames (four hour chart or longer). 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 following candles. The next candle(s) must be completely inside the parent bar’s range and each is called an “inside bar”.

A double or triple inside bar can be more powerful than a single inside bar. After the breakout of an inside bar pattern, traders want to watch for high volume to confirm that the pattern has been recognized.

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The Bitcoin Chart: Bitcoin began bouncing back on April 26 after forming a rounded bottom pattern from April 20. On Thursday and Friday, Bitcoin was forming an inside double bar pattern to consolidate the rebound.

Traders and investors can watch the crypto break or fall from the Wednesday mother bar on above-average volume over the weekend to indicate future direction. The consolidation pattern is bullish as the crypto was trading higher before.

Bitcoin has upper resistance at $31,418 and $35,593 and lower support at $28,690 and $25,772.

The Ethereum Chart: Like Bitcoin, Ethereum was trying to print an inside double bar pattern on Friday, with the price action of the past two days playing out in the range on Wednesdays. Like Bitcoin, Ethereums inside the bar is slightly bullish, but traders can watch for a breakout of the pattern on above average volume.

If Ethereum breaks from Wednesday’s mother bar, bullish traders can watch the crypto’s reversal and rebound from the 50-day simple moving average (SMA), which has served as support since April 24.

Ethereum has resistance above $1,957 and $2,150 and support below at $1,846 and $1,717.

The Dogecoin Chart: Dogecoin was also printing an inside double bar pattern on Friday and holding above support at the 50-day SMA. If Dogecoin breaks from the pattern, bullish traders will want to see the crypto regain the 200-day SMA as support.

For Dogecoin to regain this level, it will take a lot more volume. Dogecoin has been trading in below average volume recently, indicating a current lack of interest in the crypto.

Dogecoin has resistance above $0.083 and $0.091 and support below $0.075 and 7 cents.

Read more:Hong Kong banks embrace crypto firms despite skepticism across the globe

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