Bitcoin, Ethereum and Dogecoin trend down for the weekend, but 2 of the cryptos look to bounce

by James · May 12, 2023

Bitcoin BTC/USD fell about 2.5% on Friday, in line with the S&P 500, which retreated after data released by the University of Michigan indicated rising expectations in May that inflation would remain stubborn.

Ethereum ETH/USD and Dogecoin DOGE/USD also traded slightly down, but with lower than average volume, indicating that 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 opens on Monday. Historically, when Bitcoin and Ethereum behave bullishly on Saturday and Sunday, the stock market often opens higher.

Here’s a look at the three cryptographers heading into the weekend.

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The Bitcoin Chart: Bitcoin bearishly broke down from a triangle pattern on May 8, putting the crypto in a downtrend. Bitcoin’s latest low within the trend was formed on Wednesday at $28,334, and the latest low was printed at $27,279 on Monday.

On Thursday, Bitcoin printed a bearish Marubozu candlestick, suggesting that lower prices would come during Friday’s trading session. If the crypto closes near the low of the day, Bitcoin will tap a second bearish Marubozu candlestick in a row, which could indicate that lower prices will return 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.

The Ethereum Chart: Ethereum entered a downtrend on May 6, hitting a lower high on Wednesday at $1,888 and a lower low at the $1,810 mark on May 8. On Friday, Ethereum worked to press a hammer candlestick, which could indicate that the next lower low has occurred and the crypto will trade higher on Saturday.

Ethereum’s lower-than-average volume on Friday also indicates that a bounce is on the horizon as the bears begin to tire. If the bulls gain momentum and push Ethereum above the 50-day simple moving average, it could indicate that 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 another downtrend on Wednesday, as the crypto printed a lower high of $0.074 and the last confirmed lower low was formed at the 7-cent mark on Monday.

During Friday’s 24-hour trading session, Dogecoin worked to print an inside bar pattern, with all the price action taking place within Thursday’s trading range. The pattern leans bearish in this case, but traders can look for the crypto to break up or down from Thursday’s mother bar on higher-than-average volume to gauge future direction.