Bitcoin and its buddies enjoyed strong gains in the previous week, and another round of corrections might be due. Here’s what’s up!
ETH currently has the top spot at a 7.85% gain, followed by litecoin with a 5.80% increase.
XRP is still behind the pack but is still holding on to a decent 1.64% gain.
Check out this ranking of bitcoin and its buddies for the past seven days:
Bitcoin has formed higher lows and found resistance near $9,900, creating an ascending triangle on its 1-hour time frame.Price is closing in on the resistance and might be due for another bounce as Stochastic also pulls higher to reflect the presence of bullish pressure.
The 100 SMA is still above the 200 SMA, though, so resistance might be more likely to break than to hold.
In that case, bitcoin could be in for a rally that’s roughly the same height as the chart formation.
Similarly, a break below the triangle support could set off a slide that’s the same size as the triangle.
Ethereum is trading inside an ascending channel once more and appears to have already found support at the mid-channel area of interest.If this keeps holding, the price could resume the climb to the top of the channel around $220 or any of the upside targets marked by the Fibonacci extension tool.
Strong bullish momentum could even take ETH to the 61.8% level at $225 or the full extension at $235.
Stochastic is pointing up to confirm that buyers have the upper hand while the 100 SMA is safely above the 200 SMA to indicate that the uptrend is likely to carry on.
Litecoin is also in the middle of climbing inside an ascending channel on its short-term chart and seems to be setting its sights on the channel resistance.Price has just cleared the barrier at the mid-channel area of interest and could go all the way up to $50 from here. After all, the 100 SMA is above the 200 SMA to confirm that the uptrend is more likely to gain traction than to reverse.
However, stochastic is already approaching the overbought zone to signal exhaustion among buyers, and turning lower could indicate that sellers are taking over.
XRP has also formed higher lows but is consolidating inside a rising wedge on its 1-hour time frame.A bounce off the wedge bottom just took place, and the price might be able to recover to the top of the formation around $0.2100 from here.
Just be warned, there is a considerable amount of risk in trading cryptocurrencies due to their inherent volatility and sensitivity to headlines. Be careful out there!