The crypto gang needed a quick break from their recent rallies and might draw more bullish energy with these potential pullbacks.
Cryptocurrencies were still mostly in the green over the past week, with XRP leading the pack at a 23.95% price increase.
BTC and BCH are sitting on the losers’ bench, though, with a 0.13% and 1.04% loss respectively.
Check out this ranking of bitcoin and its buddies for the past seven days:
Bitcoin retreated from its rally upon testing the $12,000 mark, so it’s time for a correction y’all!Applying the handy-dandy Fib tool on the latest swing low and high shows that price is already testing the 38.2% level.
Stochastic still has room to head south, though, so sellers might still be in control. A larger pullback could last until the 61.8% Fib that coincides with an area of interest and the moving averages.
Ethereum also seems to be pausing its climb and might be due for a correction soon.Stochastic is indicating overbought conditions or that buyers need to take a break. If so, a pullback to the Fibonacci retracement levels could be needed to gather more bullish energy.
More buyers might be waiting to go long around the 38.2% Fib that lines up with a former resistance that could hold as support. An even larger correction could reach the 50% level that’s close to the 100 SMA dynamic inflection point or the 61.8% Fib that lines up with the 200 SMA.
Litecoin is also in correction mode as price turned upon hitting the $65 level and is now testing the 38.2% Fib.The 100 SMA is still below the 200 SMA, though, so there’s some bearish pressure left. However, the gap between the moving averages is narrowing to hint that a bullish crossover might happen soon.
Take note that Stochastic is just making its way down from the overbought region, which means that sellers are just getting started. Better wait for a reversal candlestick to form at any of the Fib levels if you’re planning on going long!
XRP is just getting started on its long-term reversal as price is forming a double bottom on its daily time frame.Technical indicators are suggesting that breaking past the neckline could be a challenge. The 100 SMA is below the 200 SMA to reflect the presence of selling pressure while Stochastic is starting to move south from the overbought zone.
Still, an upside break from the 0.3300 area could be enough to confirm that a rally of the same height as the chart pattern could follow.
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!