Bitcoin, Ethereum And Dogecoin Lay Low Into The Weekend: What To Watch

Ethereum ETH/USD and Dogecoin DOGE/USD were held flat by Bitcoin BTC/USD during Friday’s 24-hour trading session, in tandem with the S&P 500, which gapped up higher but fell slightly lower intraday.

The cryptocurrency sector has entered into another consolidation phase, not offering the usual volatility experienced traders and investors in the space have come to expect.

Lower-than-average volume in the sector is to blame, with traders seemingly taking a break from buying and selling cryptos as the market moves into a lull, perhaps caused by the “sell in May, go away” theory that often holds some truth.

Periods of higher volatility are still likely, however, and that may take place for at least a short period of time when the three cryptos break up or down from the triangle patterns they have settled into.

Regardless, traders and investors will be watching the crypto sector over the weekend for clues as to how the S&P 500 may behave next week and if Bitcoin, in particular, continues to consolidate, there may be no surprises for the stock market next week.

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The Bitcoin and Ethereum Chart: Bitcoin and Ethereum both began trading in triangle patterns on May 12, making a consistent series of lower highs and higher lows. Both cryptos are set to meet the apex of their triangle on May 23, and traders and investors can watch for big bullish or bearish volume to come in when they breach the upper or lower trend line of the pattern to confirm it was recognized.

On Friday, Bitcoin and Ethereum were forming inside bar patterns, with all of their price action taking place within Thursday’s range. The pattern is neutral in this case, but Ethereum’s inside bar is slightly more bullish than Bitcoin's.

Both cryptos are being held down by the eight-day exponential moving average on the daily chart, but if Bitcoin and Ethereum break up from their triangle patterns, they will regain that level, which would give bullish traders more confidence going forward.

Bitcoin has resistance above at $27,133 and $28,690 and support below at $25,772 and $25,288.

Ethereum has resistance above at $1,846 and $1,957 and support below at $1,717 and $1,554.

The Dogecoin Chart: Like Bitcoin and Ethereum, Dogecoin is trading in a triangle pattern, set to meet the apex on May 22. The Shiba Inu-themed crypto is also trading in an inside bar pattern, which leans neutral.

Unlike Bitcoin and Ethereum, Dogecoin is trending under the 200-day simple moving average, which is bearish. If the crypto breaks up from the triangle formation, Dogecoin is likely to find resistance at that indicator.

Dogecoin has resistance above at $0.075 and $0.083 and support below at 7 cents and at $0.065.

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