I’m seeing a lot of consolidation and corrections among the altcoins these days.
Are we about to get another round of breakouts soon?
Let’s take a look at the cryptocurrency charts to find out!
Bitcoin has formed higher lows and lower highs to consolidate inside a symmetrical triangle on the 4-hour time frame.
Price just bounced off the triangle top and is setting its sights back on support where buyers might be waiting. After all, the 100 SMA is above the 200 SMA to suggest that the floor is more likely to hold than to break.However, Stochastic is turning lower after recently reaching the overbought region, hinting that sellers are returning while buyers take a break.
A move below the triangle bottom could set off a drop that’s the same size as the chart formation. Similarly, an upside breakout could be followed by a rally of the same height, so better keep those eyes peeled!
Ethereum continues to cruise higher inside a rising channel on its short-term chart and looks prime for another correction.
The handy-dandy Fib tool shows where buyers are likely waiting to join in the climb. In particular, the 61.8% retracement level lines up neatly with the channel support and area of interest around $1280, as well as the 100 SMA dynamic inflection point.
This faster-moving MA is above the 200 SMA to confirm that the uptrend is more likely to resume than to reverse. Stochastic is heading south, so price could follow suit until the correction is over and the oscillator reflects exhaustion among sellers.
Litecoin is also in correction mode, as price is retreating from the top of its ascending channel.Price has just breached the mid-channel area of interest, setting its sights on the channel bottom. Stochastic is already indicating oversold conditions, which suggests that buyers could regain the upper hand now that sellers are taking a break.
The moving averages line up with the channel bottom to add to its strength as support, and the fresh crossover suggests that bulls are warming up to charge!
XRP is stuck inside a triangle pattern visible on its 4-hour time frame. It looks like the consolidation is getting tighter, which means that a breakout is bound to happen soon!
Technical indicators appear to be leaning towards a downside move, as Stochastic is on the move lower while the 100 SMA is below the 200 SMA.
Then again, the gap between the moving averages is narrowing to reflect weakening bearish momentum and hint at a potential bullish crossover. In any case, a breakout could be followed by either a rally or selloff that’s at least the same height as the chart formation.
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!