I’m seeing potential pullbacks on the long-term charts of these cryptocurrencies!
Are more buyers likely to hop in at these levels?
Bitcoin gained upside momentum from last week’s bounce, but it looks like another bullish retracement is underway.How low can BTC go from here?
The handy-dandy Fibonacci retracement tool shows that the 61.8% level lines up with a rising trend line on the daily time frame and is also near the $50,000 major psychological mark.
Stochastic has room to head south, which suggests that the correction could keep going for a while. The 100 SMA is still above the 200 SMA, though, so there’s a pretty strong chance that the longer-term climb will resume.
Ether seems to be stalling on its climb, as the price is hitting a strong roadblock at the $1,950 area. A double top pattern might form, which means that a reversal is in order. Yikes!
Stochastic is heading lower after reaching the overbought zone, suggesting that sellers are returning while buyers are taking a break. The oscillator has plenty of room to move south, so ether could follow suit while bearish pressure is in play.
However, the price has a long way to go before testing the neckline around $1,375 to confirm that the uptrend is over. This means that the reversal pattern could still be invalidated if ether breaks past the latest highs.
The 100 SMA is safely above the 200 SMA on this longer-term chart, and the gap between the moving averages is widening to reflect strengthening bullish momentum.
Litecoin has formed lower highs on its ongoing climb, suggesting that the rally might be losing its steam.
Is a selloff in order?Stochastic is starting to head south to confirm a return in bearish pressure. The moving averages hint that nearby inflection points might still hold as support, as the 100 SMA is above the 200 SMA.
Buyers might be hanging out at the long-term rising trend line that has been holding since December last year. A break below this support zone, however, could set off a dip to the next inflection point at the 100 SMA dynamic support.
XRP is still stuck in consolidation, chillin’ like a villain at the bottom of its symmetrical triangle on the daily time frame.
Can buyers keep defending this level?
Moving averages seem to think so, as the 100 SMA is above the 200 SMA. However, the gap between the two is narrowing to hint at a potential bearish crossover.
If that happens, selling pressure could pick up and trigger a break below the triangle bottom, which could be followed by a 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!