It’s all about consolidation on the crypto charts these days! Can the earlier rallies resume or will we see reversals from here?
Litecoin, on the other hand, was left eating dust as it found itself 2.27% in the red.
Check out this ranking of bitcoin and its buddies for the past seven days:
Bitcoin still seems to be in correction mode but is finding some support at the broken symmetrical triangle resistance.Price is already testing the 38.2% Fibonacci extension level, but stronger bullish momentum could take it up to the 50% extension closer to the key $10,000 mark. The 61.8% Fib extension lines up with the swing high at $10,257, then the full extension is near $11,000.
However, Stochastic is already turning south from the overbought zone, so BTC could follow suit if selling pressure picks up. The 100 SMA is still above the 200 SMA, though, so buyers might have some energy left.
Ethereum has formed lower highs and higher lows to consolidate inside a symmetrical triangle on its 1-hour time frame.Price is testing the resistance while approaching the tip of the triangle, so a breakout might be due soon. A move past the triangle top could be followed by a rally of the same height as the chart formation, which spans $230 to $250.
Similarly, a break below the triangle support could set off a drop that’s the same size as the triangle. Sellers might have the upper hand soon as Stochastic is closing in on the overbought region.
Also, the 100 SMA appears to be crossing below the 200 SMA to suggest that bearish momentum is about to kick in, but it might be a bit early to tell!
Litecoin could be done with its climb as it formed a head and shoulders reversal pattern on its 1-hour time frame. Price is testing the neckline, but support seems to be holding up quite well!
A break below the $45 level could be followed by a downtrend that’s the same height as the chart formation, which spans around $5. A bounce, on the other hand, could lead to another test of nearby resistance levels, possibly around the moving averages.
The 100 SMA just crossed below the 200 SMA to confirm that bears are taking over, but Stochastic is pulling up from the oversold region to signal a return in bullish momentum. Talk about getting mixed signals!
XRP is chillin’ like a villain inside a symmetrical triangle consolidation pattern on its short-term time frame, still deciding which direction to break out.Moving averages hint that support is more likely to break than to hold, as the 100 SMA is below the slower-moving 200 SMA.
On the other hand, Stochastic suggests that a bullish breakout might be due since the oscillator is just starting to climb from the oversold region. This suggests that buyers are taking over while exhausted sellers take a break.
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!