Upside momentum is once again picking up for bitcoin and its buddies. Are more bulls about to return at these levels?
Check out this ranking of bitcoin and its buddies for the past seven days:
Bitcoin is cruising inside an ascending trend channel as it formed higher lows and higher highs seen on the 1-hour time frame.If you’re hoping to catch this uptrend, you might want to wait for a pullback to the bottom of the channel or any of the potential support areas marked by the Fibonacci retracement tool. Stochastic is still heading lower after all, which means that the correction could carry on.
Bulls might be waiting around the 61.8% level that lines up with the $11,000 major psychological mark and is near the 100 SMA dynamic support. This moving average is above the slower-moving 200 SMA to confirm that the path of least resistance is to the upside.
Ethereum formed higher lows and found resistance at the $390 area, creating an ascending triangle pattern visible on the 4-hour chart.A test of resistance is currently taking place, and technical indicators suggest that a move back to support could follow. The 100 SMA is still below the 200 SMA while Stochastic has room to head lower.
Then again, the gap between the moving averages is narrowing to suggest a potential bullish crossover. Buyers could also return once the oscillator reaches oversold levels, possibly leading to an upside breakout and rally that’s the same height as the triangle pattern.
Using the handy-dandy Fib tool on the latest high and low shows that the 61.8% level lines up with the channel bottom and resistance-turned-support around $48.
A shallow pullback could already find support at the 38.2% Fib that’s close to the 100 SMA and mid-channel area of interest or the 50% level that coincides with the 200 SMA dynamic inflection point.
The 100 SMA is above the 200 SMA to hint that an upside break might take place while Stochastic still has some room to head north. Just be careful when the oscillator turns lower from the overbought zone since this could signal a return in bearish momentum!
If this is your first time checking out crypto charts, keep in mind that there is a considerable amount of risk in trading cryptocurrencies due to their inherent volatility and sensitivity to headlines. Be careful out there!