It looks like bitcoin has regained its footing ahead of its network upgrade next month, so let’s take a look at the next potential upside targets. Think it’ll set new highs soon?
It looks like bitcoin’s correction was deeper than I thought! Price dipped slightly below the Fib levels and longer-term rising trend line but soon recovered to show that the uptrend is still intact.
Applying the Fibonacci extension tool on this pullback shows that BTC/USD has already busted through the 38.2% and 50% levels, setting its sights on the 61.8% level close to the all-time highs next. Breaking past this swing high could lead to a rally up to the full extension at $6433.84.
Keep in mind, however, that the 100 SMA has just crossed below the longer-term 200 SMA on this 4-hour time frame and that stochastic is heading south from the overbought zone. This suggests that bears are just getting started, and a big drop from these levels could create a head and shoulders reversal pattern.
Volatility kicked higher for ethereum after its hard fork, but it looks like the longer-term area of interest around $290 still held as a floor.
Price has since tested a nearby resistance level at $311.50 and has made its way down for another test of support. Stochastic is already pulling up from oversold levels to signal that a bounce back to the resistance is in order, but the 100 SMA is still below the longer-term 200 SMA to indicate that bears are in control.
It looks like litecoin’s consolidation is more of a symmetrical triangle than a descending one as price dipped below support only to move right back up.
The consolidation is getting tighter and tighter as price approaches the peak of the triangle, which means that a breakout could be due anytime soon. But which way will it go?
Technical indicators are giving mixed signals as stochastic is heading up from the oversold region to reflect a return in bullish pressure while the 100 SMA is still below the 200 SMA to show that bearish momentum is in play.