Breakouts, breakouts everywhere! Bitcoin surged to yet another set of record highs while its peers litecoin and ethereum also broke higher. Is it time for pullbacks, though?
Bitcoin barely looked back from its recent rally as it surged to new highs at $7949.75 on news that the hard fork was suspended.
However, profits were quickly booked around those levels, causing BTC/USD retreat back to its levels before the news broke out. This could still keep the cryptocurrency prime for a pullback to the ascending trend line connecting the lows since mid-September.
This would be somewhere around the 50% to 61.8% Fibonacci retracement levels, which are also near the 100 SMA dynamic support. The short-term moving average is above the longer-term 200 SMA, so the path of least resistance is still to the upside.
So much for that potential downtrend on ETH/USD! Price actually popped higher and broke above its short-term range resistance.
Bulls are taking a break for now, which could set the stage for a pullback to the broken resistance. This coincides with the 50% Fibonacci retracement level around $308.67 while the 61.8% Fib is closer to the moving averages at $303.23.
Stochastic is still pointing down, which means that the pullback is in play while sellers have the upper hand, but the 100 SMA is above the 200 SMA to suggest that the rally is more likely to resume than reverse.
It looks like litecoin’s downside break from the descending triangle was a fake out as buyers put up a strong fight to push price back up.
LTC/USD is still safely inside its longer-term ascending channel formation and is now on its way towards testing the channel resistance. Stochastic is signaling that this ceiling could hold since the oscillator is already indicating overbought conditions.
The 100 SMA is also below the longer-term 200 SMA to reflect the presence of bearish pressure. If price bounces off the resistance, a pullback to support or the mid-channel area of interest is possible.