We’re seeing 2020 highs across much of the crypto currency landscape.
More good times ahead or is a pullback right around the corner?
Most are still holding on to some gains as the market consolidates, led by LTC which is up a whopping 47.88% and followed by BTC with its relatively “measly” 26.59% increase. XRP is way behind after a big drop, up by only 0.78% in the past seven days.
Check out this ranking of bitcoin and other altcoins for the past seven days:
Bitcoin rocketed higher from the 100 and 200 SMA, eventually making a new ALL TIME high just above the $24K handle last week. This was potentially driven by a rush of big time investors, but since then, it looks like the move has already exhausted.
With the pair now consolidating around the $24,000 level, the next question is obviously, “where to next?”
Well, the stochastic indicator is diverging from price action as it makes lower ‘highs’, but with overall sentiment being very bullish on BTC at the moment, any downside moves will likely be limited on dip buying without a fresh negative catalyst.
Watch out for dip buying patterns, as well as an upside break of the $24,000 level for potential long setups for now.
Ethereum’s gains haven’t been as dramatic as BTC’s or LTC’s, but it is in a solid uptrend that may still have legs.
With stochastic signaling short-term oversold conditions as the market retests the rising moving averages and the rising ‘lows’ pattern, technical traders may make this pullback another buying opportunity.
Also, keep in mind too that the market is consolidating into somewhat of a rising wedge pattern, so be aware that this could quickly draw in technical sellers if we see a break below the MA’s and rising trendline.
Litecoin just made a big time move in one week, trading around $80 just a week ago to hit fresh 2020 highs around the $124 handle.
Since then, LTC has made a 50% retracement to the $100 handle, where buyers seemed to have been waiting to buy on a dip. But with a lower swing ‘high’ being made in today’s trade, the market may make moves for a deeper pullback ahead.
The 61% Fib retracement level is the next one to watch for potential support to form, followed by the rising 200 SMA around the $88 – $90 area.
XRP got knocked on its butt this week, falling from 2020 high’s around $0.78 to its current level around $0.30, driven by speculation that the SEC will file a lawsuit against Ripple very soon.
Even with stochastic signaling oversold conditions, this crytpo currency may not be ready for another super rally just yet. Instead, any bounce may draw in more sellers until the situation between Ripple and the U.S. government gets squared away.
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!