The crypto gang is retreating from its latest set of rallies, possibly looking to gather more buyers at these correction levels. Take a look!
Is bitcoin overbought? It might’ve been given that BTC is down 4.91% for the week, followed by ETH which is down 8.08%. The rest of their peers are much deeper in the red, with LTC looking at the biggest loss of 12.35%.
Check out this ranking of bitcoin and other altcoins for the past seven days:
Bitcoin is still in correction mode as it broke below the mid-channel area of interest and is down to the 50% Fibonacci retracement level.A larger pullback could still reach the 61.8% level at $17,819 or the channel bottom closer to $17,500. Moving averages just made a bearish crossover to indicate that further declines are in the cards.
Stochastic is already indicating oversold conditions, though, so buyers might be ready to return soon. If so, bitcoin could climb back to the swing high at $19,950 or the channel top closer to $20,500. New all-time highs, anyone?
Given bitcoin’s volatility, it would be no surprise.
Ethereum continues to cruise southbound with its lower highs and lower lows inside a descending trend channel on the 1-hour time frame.The 100 SMA just crossed below the 200 SMA to indicate that the path of least resistance is to the downside or that support levels are more likely to break than hold. In that case, a move below the latest lows at $545 could set off a steeper drop!
If support holds, on the other hand, price could retreat to the resistance areas marked by the Fib retracement tool. The 38.2% level is close to the mid-channel area of interest around $565, so sellers might be waiting there.
Litecoin could be due for a reversal as it made a couple of failed attempts to break past the $93 level. Price has then formed a double top and has yet to test the neckline at $66.
Breaking below this support level could confirm that a selloff is in order, likely lasting by the same height as the chart pattern. Technical indicators are suggesting that the uptrend might still carry on though.
For one, the 100 SMA is safely above the 200 SMA and is increasing its lead to indicate that bullish momentum is picking up. Stochastic is in the oversold region to reflect exhaustion among sellers, too.
XRP has broken out of its symmetrical triangle consolidation pattern, signaling that a selloff of the same height as the formation might be in the works.At the same time, the 100 SMA is moving below the 200 SMA to confirm that bearish pressure is in play. Stochastic has dipped into the oversold region, however, sellers might need to take a break.
In that case, XRP could retest the broken triangle support before heading further south. A move back inside the triangle could suggest that the breakout was a fake out!
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!