Most altcoins are still on a tear these days, so I’m checking out the next potential bullish targets.
Can BTC, ETH, and LTC sustain their rallies?
Let’s take a quick review of the ranking of bitcoin and other altcoins for the past seven days:
Bitcoin bulls are charging into the New Year, allowing the rising trend line support to hold and taking price up to record highs around the $34,000 area. What’s probably helping is the return of the kimchi premium.
This lines up with the 61.8% Fib extension level and the swing high, so buyers might be booking profits at this point. If this is enough to keep gains in check, bitcoin could retreat to the trend line support again, especially with Stochastic indicating overbought conditions.If BTC believers are able to keep the rally going, price could even extend its climb all the way up to the full Fibonacci extension around $37,500!
The 100 SMA is above the 200 SMA, after all, confirming that the path of least resistance is to the upside or that the uptrend is more likely to pick up.
Ethereum has also been on a tear lately, but it looks like the climb is stalling at a key resistance level. As you can see from the chart above, price has formed lower highs and higher lows inside a symmetrical triangle pattern.
Stochastic is starting to turn lower from the overbought zone to reflect a return in bearish pressure, likely taking price back to the triangle bottom around $1,000.
However, the 100 SMA remains safely above the 200 SMA to suggest that more gains are in the works. An upside breakout could take ETH higher by the same height as the chart pattern, which spans $900 to $1,150.
Litecoin is cruising above an ascending trend line on its 1-hour time frame and looks prime for a pullback. Applying the handy-dandy Fib tool shows where buyers might be waiting to hop in.It looks like the 50% retracement level is already holding, but a larger pullback could still take LTC down to the 61.8% Fib that’s closer to the trend line at $142.
If bulls are able to defend any of these Fib levels, litecoin could recover to the swing high at $173.33 and beyond. Technical indicators are looking very bullish, with Stochastic turning higher and the 100 SMA increasing its gap above the 200 SMA.
XRP is lagging behind its peers as it tumbled towards the end of last year. Price had a bit of a reprieve in the past weeks, but it looks like the broken support at 0.26 held as resistance.
The Fibonacci extension tool shows which levels bears are eyeing next. Price could go as low as the 38.2% extension at 0.18 or even the 61.8% Fib at 0.13.
Just be careful since the moving averages are making a bullish crossover while Stochastic is heading up without dipping to the oversold region, suggesting that buyers might still be in the game.
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!