Crypto bulls are back in town yo! Bitcoin and its buddies look prime for more gains as longer-term bullish patterns are playin’ out!
Cryptocurrencies scored impressive gains in the previous week, led by ETH with a whopping 29.14% price increase.
XRP is behind the pack but is still holding on to a stellar 15.72% gain next to BTC, which is up 17.04%.
Check out this ranking of bitcoin and its buddies for the past seven days:
Bitcoin gained so much upside momentum since its triangle breakout we caught last week, attempting another potential bullish feat this time.An inverted head and shoulders pattern can be seen on its daily time frame, and it looks like price has already climbed above the neckline resistance.
In that case, the rallies are just getting started yo! The 100 SMA crossed above the 200 SMA to confirm that bullish momentum is picking up, but Stochastic is in the overbought region to suggest that a quick pullback might be needed.
Ethereum is also in the process of confirming a potential long-term reversal as price is testing the neckline of a sketchy triple bottom on its daily chart.Now I don’t see this chart pattern very often, so I’m thinking that this rare formation could be a pretty potent signal that a rally is underway.
Heck, ETH could be in for a climb that’s at least the same height as the reversal formation, which spans around $200!
The 100 SMA is safely above the 200 SMA to indicate that more gains are in the works, but Stochastic is reflecting exhaustion among buyers. If sellers take advantage of this, another dip to the bottoms could follow.
Litecoin has been on a tear but is hitting a roadblock at the top of its ascending channel on the daily time frame. A pullback to the nearby support levels might be needed to draw more bullish energy.Applying the handy-dandy Fib tool on the latest swing low and high shows that the 61.8% level lines up with the channel bottom and a former resistance level.
If buyers are eager to return, a shallow pullback could be enough to spur a bounce. The 38.2% level is close to the mid-channel area of interest while the 50% Fib lines up with the 200 SMA dynamic inflection point that could add to its strength as support.
XRP looks prime for a short-term bullish pullback opportunity as price is moving above a rising trend line on its 1-hour chart.Stochastic is indicating overbought conditions, so buyers could take a break and allow sellers to take the upper hand. However, the 100 SMA is above the 200 SMA to indicate that the rally is more likely to resume than to reverse.
Applying the Fib retracement tool on the latest rally reveals that the 61.8% level lines up with the trend line and a short-term area of interest where buyers might be waiting.
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!