Partner Center Find a Broker

Some altcoins are starting new trends these days while others are stuck in consolidation. Any big trading opportunities here?

Cryptocurrencies were all in the red last week, led by Bitcoin Cash with a 7.74% loss and LTC with a 5.93% decline.

Bitcoin, which was down 3.58%, has the smallest loss among the pack.

Check out this ranking of bitcoin and its buddies for the past seven days:

Altcoins Price Performance from MarketMilk
Altcoins Price Performance from MarketMilk

BTC/USD: 4-hour

BTC/USD 4-hour Chart
BTC/USD 4-hour Chart

Bitcoin is still stuck in consolidation as the price has formed higher lows and slightly higher highs inside a rising wedge. So much for that triangle breakout last week!

Price seems to be attempting a break below support but has climbed back inside the wedge. Bulls might still have some energy left as the 100 SMA is above the 200 SMA to hint that the path of least resistance is to the upside.

However, Stochastic has already reached the overbought region to indicate that buyers are tired. Turning lower could confirm that sellers are taking over and might take bitcoin down by the same height as the chart pattern.

ETH/USD: 1-hour

ETH/USD 1-hour Chart
ETH/USD 1-hour Chart

Ethereum picked the bearish route after its triangle consolidation last week, creating a fresh descending channel on its 1-hour time frame.

A pullback from the recent tumble is taking place, though, and the price is already testing the 50% Fibonacci retracement level. A larger correction could reach the 61.8% level, which is right smack in line with an area of interest and the 200 SMA dynamic resistance.

The 100 SMA is safely below this slower-moving MA to confirm that the selloff is more likely to resume than to reverse. At the same time, Stochastic has started to move south, so the price could follow suit now that bearish momentum is picking up.

LTC/USD: 1-hour

LTC/USD 1-hour Chart
LTC/USD 1-hour Chart

Litecoin is gaining traction on its downtrend as price broke below the earlier head and shoulders neckline and is now cruising in a descending channel.

Price had a quick pullback to the $45 level and is making another bounce off support. A correction to the 38.2% Fib and mid-channel area of interest is once again taking place, although a larger correction might still be possible.

Stochastic is pointing up to suggest that some bullish pressure is returning, possibly enough to take litecoin to the support-turned-resistance at the top of the channel.

XRP/USD: 4-hour

XRP/USD 1-hour Chart
XRP/USD 4-hour Chart

XRP has formed lower highs and lower lows to consolidate inside a falling wedge pattern on its 4-hour chart.

Support is currently being tested, possibly yielding a bounce back to the wedge resistance around .2070 next. However, Stochastic is already indicating overbought conditions or exhaustion among buyers

If sellers jump on this opportunity, a break below the bottom of the wedge could follow, resulting in a drop that’s the same height as the chart formation. The 100 SMA also seems to be attempting a downward crossover to draw more bears in.

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!