Bearish pressure seems to be building up for these cryptocurrencies, as more sellers might be hanging out at these correction levels.
Are more losses in the cards?
Bitcoin might be in for a selloff as it formed a sketchy double top pattern on its 4-hour time frame.Are BTC sellers about to take over?
Price has yet to break below the neckline of the reversal formation to confirm that a downtrend is underway. So far, support at the $54,500 area appears to be holding, but a breakdown could be followed by a drop that’s at least the same height as the chart pattern.
Buyers might still have a chance to resume the climb since the 100 SMA is safely above the 200 SMA to signal that support levels are more likely to hold than to break. At the same time, Stochastic is pulling up from the oversold region to show that sellers are taking a break.
Ether is gaining traction on its slide, as price fell through the neckline of its reversal pattern around $1,750 and appears to be forming a bearish continuation signal.
Selling pressure could pick up on a break below the short-term consolidation around $1,700, possibly leading to a drop that’s a least the same height as the head and shoulders formation.
However, the 100 SMA is still above the 200 SMA on this time frame to suggest that some bullish momentum is present. Also, Stochastic has been hovering around the oversold region to signal that sellers could use a break.
Litecoin appears to be in the middle of a pullback to an area of interest spanned by Fibonacci retracement levels and the moving averages.Will the dynamic resistance levels hold?
Technical indicators suggest otherwise since Stochastic is moving north while the 100 SMA made a bullish crossover.
The 61.8% Fib might be the line in the sand for a retest, as it coincides with the 200 SMA dynamic inflection point and the broken support zone, which add to its strength as a ceiling.
XRP is still chillin’ like ice cream fillin’ inside its symmetrical triangle on the daily time frame.
This time, price is testing the resistance and might be due for a dip back to the bottom. Sellers might need a break soon, as Stochastic is edging close to the overbought zone to reflect exhaustion.
Moving averages are hinting at a potential upside breakout, though. If XRP is able to bust through the triangle top around 0.6000, a rally of the same size as the triangle pattern could follow.
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!