Altcoins are pausing from their trends these days, creating triangle patterns on their short-term charts while waiting for the next set of catalysts.
Bitcoin Cash is leading the declines with a whopping 5.44% loss, followed by litecoin which is down nearly 3%.
Check out this ranking of bitcoin and its buddies for the past seven days:
Bitcoin has formed lower highs and higher lows to consolidate inside a symmetrical triangle pattern visible on its 4-hour chart.A breakout from this pattern could be due soon, as the consolidation is getting tighter. However, technical indicators are giving mixed signals on which direction it might go next.
The 100 SMA is below the 200 SMA to suggest that the path of least resistance is to the downside or that support is more likely to break than to hold. Meanwhile, Stochastic is turning higher to hint that buyers have the upper hand.
Either way, bitcoin could be in for a trend that’s a least the same height as the triangle pattern once it breaks out!
Ethereum is also chillin’ like ice cream fillin’ inside a symmetrical triangle formation visible on its short-term time frame.Price just bounced off support and seems to be setting its sights on the resistance around $243. Technical indicators are signaling that the triangle top is likely to keep gains in check.
Stochastic is turning lower from the overbought region, which means that sellers are taking over while exhausted buyers take a break. Also, the 100 SMA just crossed below the 200 SMA to confirm that bearish pressure is picking up.
Stronger selling momentum might even trigger a break below the triangle bottom and a decline that’s the same size as the chart pattern.
Litecoin is in the middle of a break-and-retest situation as it retreats after busting through a descending trend line on its 1-hour chart.Applying the handy-dandy Fib tool shows where more buyers might be waiting before extending the climb. The 50% level lines up with an area of interest while the 61.8% Fib is closer to the broken trend line, which might hold as support moving forward.
The 100 SMA is still below the 200 SMA to indicate that there’s still a bit more selling pressure left, but a crossover seems to be looming. Stochastic has room to head lower before reflecting oversold conditions, but the oscillator also seems to be turning higher.
XRP is forming lower highs while finding support around the 0.1950 level, creating a descending triangle formation on its 1-hour time frame.Price is bouncing off the triangle bottom and might make its way back to the resistance around .2050 next. Moving averages suggest that there’s room for some upside as the 100 SMA is still above the 200 SMA.
Be careful when trying to catch a rally, though, as Stochastic is already indicating overbought conditions or exhaustion among buyers. Heading south could mean that sellers have regained the upper hand, so XRP might follow suit and attempt to break below support.
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!