I’m seeing more signs that altcoin bulls are getting ready to charge! Take a look at these potential reversal plays.
BTC is enjoying an impressive 7.72% gain so far, followed way behind by ETH which is up by only 0.86%. After holding on to the top spot for a week, BCH is trailing behind its crypto peers with a 1.43% drop in price.
Check out this ranking of bitcoin and its buddies for the past seven days:
Bitcoin continues to gain traction on its climb as it cruised past the 61.8% Fibonacci extension level and is setting its sights higher.If price is able to bust through the mid-channel area of interest, bitcoin could make its way up to the channel top or the full extension around $13,000.
The 100 SMA is safely above the 200 SMA to confirm that the path of least resistance is to the upside, but Stochastic is already hovering close to the overbought zone to reflect exhaustion among buyers. Turning lower could lead to a quick dip to nearby support levels.
Ethereum might be tired from its rally as price is forming a head and shoulders reversal pattern on its 1-hour time frame.Price has yet to test and break below the neckline support around $370 to confirm that a selloff is due. Bears might be ready to take over soon as Stochastic is closing in on the overbought zone.
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.
Litecoin is also forming a reversal pattern, but it’s an inverted head and shoulders for this one!
A break past the neckline resistance at $51 could be enough to confirm that a climb of the same height as the chart formation might follow. Stochastic is already heading north, so price could follow suit while buyers return.
The 100 SMA has also crossed above the longer-term 200 SMA to indicate that bullish pressure is about to pick up. Price has popped up above both moving averages, so these could hold as dynamic support levels moving forward.
XRP is still consolidating inside a rising wedge pattern on the 4-hour time frame and is currently testing support. A bounce off current levels might be enough to take price back up to the wedge resistance.The 100 SMA is above the 200 SMA while Stochastic is pointing up to reflect the presence of bullish momentum. If buyers are strong enough, they could even push for a break of the wedge top and a rally that’s the same size as the chart pattern.
On the other hand, if sellers refuse to let up, a candlestick closing below support at 0.2420 could trigger a drop that’s the same height as the wedge.
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!