Benzinga - Bitcoin (CRYPTO: BTC) was falling about 3% lower during Friday’s trading session, showing weakness compared to the general market, which saw the S&P 500 holding flat.
The crypto sector appeared to be trading more in tandem with spot gold, which was retracing about 1.3% lower.
U.S. Services Purchasing Managers' Index rose from 52.6 points in March to 53.7 points in April, which came in above the expectation of 51.5. The news had investors fearing the Federal Reserve may continue with its hawkish stance when it meets in May to decide whether to continue hiking interest rates or pause.
Ethereum (CRYPTO: ETH) was following Bitcoin to trade about 5% lower, and Dogecoin (CRYPTO: DOGE) was falling by about the same amount.
Traders will be watching the crypto sector over the weekend for clues on how the S&P 500 may open on Monday.
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The Bitcoin and Ethereum Charts: Bitcoin and Ethereum reversed downward on April 14 and April 16, respectively, with both negating their uptrends on Friday by printing lower lows.
Bitcoin’s most recent high was printed on April 14 at $31,050 and Ethereum’s high was formed at the $2,142 mark two days later. Although the cryptos negated their uptrends, neither has bounced up to print a lower high yet to confirm a new downtrend is intact.
Bitcoin and Ethereum were working to print bearish Marubozu candlesticks on Friday, which may indicate more downside is on the horizon before a bounce. Traders can watch for the cryptos to eventually print a bullish reversal candlestick, such as a doji or hammer candlestick, to indicate the bounce is on the horizon.
Bitcoin has resistance above at $28,690 and $31,418 and support below at $25,772 and $25,288.
Ethereum has resistance above at $1,957 and $2,150 and support below at $1,846 and $1,717.
The Dogecoin Chart: Dogecoin’s drop on Friday caused the crypto to fall under the 200-day simple moving average, which is bearish and the crypto also printed a lower low to negate its uptrend. Like Bitcoin and Ethereum, Dogecoin was working to print a bearish Marubozu candlestick.
The move lower was coming on lower-than-average volume, which indicates a reversal to the upside may be in the cards over the next few days. Bullish traders can watch for Dogecoin to eventually print a reversal candlestick to indicate a bounce is in the cards.
Dogecoin has resistance above at $0.083 and $0.091 and support below at $0.075 and at 7 cents.
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