Bitcoin and its buddies aren’t looking so swell these days, as another round of breakdowns took place.
Can altcoins find buyers at these key support zones?
Bitcoin might be bracing for a bigger selloff, as price is forming a head and shoulders pattern on its daily time frame.How low can BTC go?
A break below the neckline around the $30,000-32,000 region could set off a slide that’s the same height as the chart pattern. That just might take BTC below the $10,000 mark in the long run! Yikes!
The 100 SMA is above the 200 SMA for now, suggesting that there’s still a chance that the climb could resume. However, the gap between the moving averages is narrowing to hint at a possible bearish crossover.
Stochastic is also on the move down but might be closing in on the oversold region soon to reflect exhaustion among sellers.
ETH has also bee in the red zone these days, breaking below support around the $2,200 mark and dipping to lows at $1,800.
Buyers seem to stepping up, though, as ETH is hanging out at the bottom of its descending channel visible on the 4-hour chart.At the same time, Stochastic is pulling up from the oversold region to suggest that buyers are returning. A bit of bullish divergence can also be seen, with the oscillator forming higher lows and ETH making lower lows.
Just be careful if you’re planning to hop in a countertrend long position, especially since the 100 SMA is still below the 200 SMA.
EOS might be able to pull up from its slide soon, as price is approaching a long-term support zone that’s been holding since 2019.
Then again, this faster-moving SMA is below the 200 SMA to indicate that the path of least resistance is to the downside. In other words, support is more likely to break than to hold, possibly leading to a dip to the long-term floor at $2.150 before any bounce occurs.
XRP is also hovering around a potential support zone while technical indicators reflect exhaustion among sellers.
How high can XRP go from here?If the descending channel bottom holds as a floor, price could recover to the top at $1.2000 or at least until the mid-channel area of interest at $0.8000.
The 100 SMA is safely above the 200 SMA, and the gap between the indicators is widening to signal strengthening upside momentum. At the same time, Stochastic is in the oversold region with a bullish divergence to boot!
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!