The crypto gang is back in consolidation mode, so I’m gonna keep my eyes peeled for big breakouts.
Which way could these altcoins go?
Bitcoin has formed lower highs and higher lows recently, creating a symmetrical triangle pattern on its 4-hour chart.
Is price about to break out of this consolidation soon? Is bitcoin a buy?The triangle resistance is holding so far, which suggests that another test of support around $34,500 might be in the cards. Stochastic is heading south after all, so BTC could follow suit while bearish momentum is present.
Stronger selling pressure might even bust through the triangle bottom and set off a drop that’s the same height as the chart pattern, so watch out!
Litecoin is also stuck inside a symmetrical triangle consolidation pattern in its 4-hour time frame. Is litecoin a buy?
Price is hovering around the triangle top and might still be in for a break higher, possibly leading to a rally that’s the same size as the chart formation.However, the 100 SMA is below the 200 SMA to indicate that resistance is more likely to hold than to break. At the same time, Stochastic is on the move down to confirm that sellers have the upper hand.
If you’re LTC bullish, better wait for the triangle bottom around $170 to catch a bounce.
ETH/USD: DailyFibonacci extension tool. The 38.2% level might be a solid support area since it lines up with the swing low.
ETH bulls might still be able to put up a fight, though, as the 100 SMA is safely above the 200 SMA to suggest that the uptrend could carry on.
Also, Stochastic is starting to head north, so the price could follow suit while buyers are regaining control.
XRP bulls appear to be charging again, as the price already busted through its symmetrical triangle resistance.Don’t fret if you’ve missed out on the upside breakout, though, since the price might still pull back to the broken triangle top for a retest.
Stochastic is indicating that buyers are taking a break for now and might be waiting to hop in at this area of interest around 0.9000. If this holds as support, XRP could be in for a climb that’s the same height as its triangle pattern!
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!