Bitcoin and its crypto buddies hit strong resistance levels in their latest rallies, possibly yielding more opportunities to catch pullbacks.
XRP is behind the pack but still looking at a decent 2.68% price gain.
Check out this ranking of bitcoin and its buddies for the past seven days:
Bitcoin busted through that wedge consolidation pattern we were watching last week and is now forming higher highs and higher lows inside a rising channel.Price just bounced off the $10,400 level at the top of its channel and has retreated to the mid-channel area of interest. This is right smack in line with the 50% Fibonacci retracement level where buyers might be waiting to join in.
A larger pullback could still last until the very bottom of the channel around $9,000 or the 61.8% Fib that coincides with the dynamic support at the moving averages.
The 100 SMA is still above the 200 SMA to signal that the uptrend could carry on, but the gap between the two is narrowing to reflect slowing bullish pressure.
Also, Stochastic is heading south so BTC could follow suit while sellers have the upper hand.
Ethereum is also in the middle of a correction as price turned upon hitting the $250 level and is pulling back to the nearby support levels marked by the Fib tool.The 50% retracement level seems to have held as support, but Stochastic is suggesting that sellers are just getting started.
With that, a larger correction could test the 61.8% Fib that coincides with a former resistance level that might hold as support.
The 100 SMA is safely above the 200 SMA for now, confirming that support levels are more likely to hold than to break. If so, ETH could recover to the swing high and beyond!
Litecoin is trending higher inside an ascending channel on the 1-hour time frame but could use additional buying energy to sustain the climb.A correction to the 61.8% Fibonacci level is taking place, and holding as support could send LTC back up to the swing high around $50 or the top of the channel closer to $52.
However, Stochastic is showing the presence of downside momentum while exhausted buyers are taking a break.
Better wait for the oscillator to turn higher from the oversold region if you’re counting on bullish pressure to kick in!
XRP is also cruising inside an ascending channel on its 4-hour time frame and looks prime for a continuation of the rally soon.Price is currently testing the 50% Fib but has formed a reversal candlestick to suggest that support is likely to hold. If so, a move back to the swing high at 0.2151 could follow.
A larger pullback could dip until the 61.8% level or the channel support at 0.1950 as Stochastic still reflects bearish energy and has plenty of room to head lower before signaling exhaustion among sellers.
Just be careful when going long since the 100 SMA is already below the 200 SMA to show that the path of least resistance is to the downside. In other words, support might be more likely to break than to hold!
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!