Cryptocurrency Consolidation on Friday
The cryptocurrency market witnessed a day of consolidation on Friday as Bitcoin (BTC/USD), Ethereum (ETH/USD), and Dogecoin (DOGE/USD) displayed strong bullish patterns on their daily charts.
These three digital assets have been on an impressive bullish run since the beginning of the year, with Bitcoin surging 46%, Ethereum climbing over 50%, and Dogecoin jumping by approximately 40% in 2025. The recent surge across the cryptocurrency sector can be attributed in part to the SEC’s approval of spot Bitcoin ETFs, with anticipation building for similar approval for Ethereum ETFs.
Adding to the positive sentiment is the upcoming Bitcoin halving, an event that occurs once every four years. This impending halving, set to take place in April, is expected to further bolster the crypto sector.
The surge in prices has also propelled Grayscale Bitcoin Trust (GBTC) to soar by around 60% since the start of the year. Like Bitcoin, Ethereum, and Dogecoin, GBTC also witnessed consolidation on Friday, forming both an inside bar pattern and a potential bull flag.
GBTC, known for its high liquidity, has been a popular spot Bitcoin ETF among traders and investors, boasting an average 30-day trading volume exceeding 14,000 shares.
Bitcoin and Ethereum’s Bullish Trends
Between Feb. 24 and Feb. 28, Bitcoin and Ethereum experienced significant surges of 26% and 20% respectively before entering a phase of sideways consolidation. Over the past two days, these leading cryptocurrencies have been trading laterally, forming bullish inside bar and bull flag patterns on their 24-hour charts.
If Bitcoin and Ethereum break out from these flag formations on above-average volume, it could propel them towards the price targets of $77,000 and $4,235 respectively.
The recent consolidation has allowed the Relative Strength Indexes (RSI) of Bitcoin and Ethereum to retreat from the overbought levels of 88% and 85% respectively. The drop in RSI levels towards the 70% mark could create space for another upswing in their prices, a development eagerly awaited by bullish traders.
Bearish traders, on the other hand, are eyeing a potential drop below the eight-day Exponential Moving Average (EMA) as a signal of longer-term consolidation towards lower price levels.
For Bitcoin, key resistance levels are seen at $64,899 and $66,999, while support lies at $59,249 and $56,113.
Challenges for Dogecoin
While Bitcoin and Ethereum show signs of consolidation, Dogecoin faces its own set of challenges. With its RSI hovering around 87% – indicative of being heavily overbought – and a significant detachment from the EMA, Dogecoin is poised for a likely retracement in the coming days.
Bullish traders are hoping for continued consolidation to allow the eight-day EMA to align with the price of Dogecoin. A surge in bullish volume breaking Dogecoin above Thursday’s high could indicate further upwards momentum. Conversely, bearish traders are watching for signs of momentum loss and the formation of bearish reversal candlesticks, such as doji or shooting star formations.