Benzinga- Bitcoin (CRYPTO:BTC) fell around 2.5% on Friday, alongside the S&P 500, which fell after data from the University of Michigan indicated rising expectations in May that inflation would remain stubborn.
Ethereum (CRYPTO: ETH) and Dogecoin (CRYPTO:DOGE) were also trading slightly lower, but on below average volume, indicating that the local bottom may be reached.
Traders and investors can monitor the crypto sector, especially Bitcoin and Ethereum, over the weekend to gather information on when the stock market opened on Monday. Historically, when Bitcoin and Ethereum perform higher on Saturday and Sunday, the stock market often opens higher.
Here is a look at the charts of the three cryptos ahead of the weekend.
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- The Bitcoin chart: Bitcoin broke down from a triangle pattern on May 8, which put the crypto in a downtrend. Bitcoin's last lower high in the trend was formed on Wednesday at $28,334 and the last lower low was printed at $27,279 on Monday.
- On Thursday, Bitcoin printed a bearish Marubozu candlestick, which suggested lower prices during Friday's trading session. If the crypto closes near its low for the day, Bitcoin will print a second consecutive bearish Marubozu candlestick, which could indicate that lower prices will return on Saturday.
- Bullish traders want to see the crypto eventually form a bullish reversal candlestick, like a doji or hammer candlestick, which could indicate that a rebound is in the cards, at least to form another lower high.
- Bitcoin has resistance above $27,113 and $28,690 and support below at $25,772 and $25,288.
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 $1,810 on May 8. On Friday, Ethereum was working to print a hammer candlestick, which could indicate that the next lower low has occurred and the crypto will trade higher on Saturday.
- Ethereum's below-average volume on Friday also signals that a rebound 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 $1,846 and $1,957 and support below at $1,717 and $1,564.
The Dogecoin chart: Dogecoin confirmed a fresh downtrend on Wednesday, when the crypto printed a lower high of $0.074 and the most recent confirmed lower low formed at the 7 cent mark on Monday.
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- During Friday's 24-hour trading session, Dogecoin struggled to print an inside bar pattern, with all of its price action taking place within Thursday's trading range. The trend is bearish in this case, but traders can watch the crypto breakout or decline from Thursday's parent bar on above-average volume to gauge future direction.
- Like Ethereum, Dogecoin was working to print a hammer candlestick on Friday, suggesting that the local bottom may have occurred.
- Dogecoin has resistance above $0.075 and $0.083 and support below $0.07 and $0.065.
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