Cryptocurrencies are still on the retreat these days, closing in on longer-term correction levels.
Or are reversals already taking place?
Bitcoin bulls decided to take a break upon reaching the $58,000 area, leading to a sharp price drop to the $47,000 levels.This happens to line up with the 38.2% Fib and 100 SMA dynamic inflection point where buyers might be waiting. After all, Stochastic is already dipping into the oversold region to signal exhaustion among sellers.
At the same time, the 100 SMA is above the 200 SMA to confirm that the uptrend could resume, and the gap between the moving averages is widening to reflect strengthening bullish momentum.
A larger pullback could reach the 50% Fib at $43,655 or the 61.8% level that lines up with a rising trend line and area of interest. That’s still around the $40,000 mark, though!
Ethereum tumbled below the rising trend line support on its 4-hour time frame, hinting that a reversal from the uptrend is in the works.
The price might still retest the broken trend line or pull up to the Fibonacci retracement levels to gather more selling energy before resuming its slide. If any of these Fib levels are able to keep gains in check, ETH might revisit the swing low at $1,367.45 or head further south.
However, technical indicators suggest that there’s still a chance for the climb to resume. The 100 SMA is above the 200 SMA while Stochastic is closing in on the oversold region to signal seller exhaustion.
Litecoin is in correction mode on its daily time frame, as price is closing in on a long-term rising trend line that’s been holding since December last year.This happens to line up neatly with a former resistance level and the 61.8% Fib, so plenty of bulls might be hanging out at this area of interest around $150.
Stochastic has some room to head south, so price could keep following suit until oversold conditions are met. The 100 SMA is safely above the 200 SMA, though, so bullish pressure could stay in play.
XRP ain’t lookin’ too good yo!Price crashed through the short-term support zone around $0.5000 and has dipped to a low of $0.3640 before pulling up. XRP is now hovering around the area of interest spanned by the 38.2% to 50% Fib levels, which might keep gains in check.
Stochastic is on the move up but is nearing the overbought zone to reflect exhaustion among buyers and a likely return in selling pressure. A larger pullback could still reach the 61.8% Fib right around the $0.5400 mark.
Meanwhile, the moving averages are attempting a bearish crossover that would likely draw more sellers in!
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!