Consolidation is still the name of the game for most altcoins, as bitcoin and its buddies appear to be waiting for big catalysts.
Will we see crypto breakouts soon?
Check out this ranking of bitcoin and other altcoins for the past seven days:
Bitcoin bounced off that channel support we were eyeing last week and has since climbed up to the mid-channel area of interest.Price seems to be deciding whether or not to carry on with its rally to the channel resistance around the $21,000 area, and technical indicators are giving mixed signals.
The 100 SMA just crossed above the 200 SMA to indicate that the path of least resistance is to the upside or that further gains are likely. However, Stochastic is turning lower to suggest that sellers could take over while exhausted buyers take a break.
Ethereum might be done with its slide as price formed a double bottom reversal pattern and already broke above the neckline!This means that a rally of the same height as the chart formation might follow, especially since the moving averages made a bullish crossover.
Stochastic suggests that buyers could use a quick breather, though, likely resulting in a pullback to nearby support levels. More bulls might be waiting around the 38.2% Fib, which lines up with the broken neckline resistance.
Litecoin formed lower highs and higher lows, creating a symmetrical triangle pattern on its 1-hour chart. Price is currently testing the triangle top and might retreat back to the bottom.
Bearish pressure could pick up as Stochastic is heading down, but the moving averages’ bullish crossover hints that an upside breakout is possible.
If the latter takes place, litecoin could be in for a rally that’s at least the same height as the triangle pattern.
XRP continues to cruise lower after its downside breakout in the previous week. It is now moving inside a descending channel visible on its 1-hour time frame.The 100 SMA is above the 200 SMA for now, but the gap between the indicators is narrowing to reflect weakening bullish momentum and a potential bearish crossover.
Price is testing the channel bottom and could be due for a quick bounce to the top since Stochastic has been indicating oversold conditions for a while. Watch out for sellers defending the channel resistance, though!
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!