I’m seeing new trend lines and channels forming on the 4-hour charts of the altcoins. Better keep tabs on these potential trade opportunities!
Cryptocurrencies were mostly in the red for the previous week, erasing most of the other week’s gains.
Bitcoin is looking at the smallest loss of 1.86%, followed by LTC which is down 3.63%. XRP is behind the pack with nearly a 5% loss.
Check out this ranking of bitcoin and its buddies for the past seven days:
Bitcoin is cruising inside a descending channel on its 4-hour time frame as price made lower highs and lower lows.Bulls are defending the channel bottom for now and could push price back up to the nearby resistance levels. The 38.2% Fibonacci retracement level that’s right smack in line with the mid-channel area of interest is keeping gains in check for now.
A larger rally could last until the channel top closer to the 61.8% Fib and $9,435 level. This is also in line with the 200 SMA dynamic inflection point, which is above the faster-moving 100 SMA to confirm that resistance levels are likely to hold.
Ethereum is also trending lower inside a falling channel visible on its 4-hour time frame. Price is in the middle of a pullback to the mid-channel area of interest and could be due to revisit the swing low or channel bottom soon.Stochastic is already moving south after a brief stay in the overbought region, suggesting that sellers are eager to take over. The 100 SMA just crossed below the 200 SMA to confirm that the selloff is more likely to resume than to reverse.
Applying the handy-dandy Fib tool on the latest swing low and high shows that the 61.8% level is near the channel resistance, which might be the line in the sand for a correction.
Litecoin seems tired from its climb as it forms a double top pattern on its 4-hour chart. Price has yet to test and break below the neckline at $40 to confirm that a drop is due.If that happens, litecoin could fall by the same height as the chart pattern, which spans around $10. Stochastic is already pointing down to suggest that sellers have the upper hand.
The 100 SMA also crossed below the 200 SMA to indicate that support is more likely to break than to hold. If bulls charge again, though, another top around $50 could be formed.
XRP looks ready to resume its slide as price is bouncing off the falling trend line resistance visible on the 1-hour chart.The Fibonacci extension tool shows where the next downside targets are located, with the 61.8% level coinciding with the latest swing low.
Technical indicators are suggesting that sellers have the upper hand as Stochastic makes its way to the oversold region while the 100 SMA remains safely below the 200 SMA. Stronger selling pressure could take XRP down to the full extension at 0.1620 next.
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!