Bitcoin and its buddies seem to be finding their footing, but bullish energy could be put to the test at these resistance-turned-support zones.
Will buyers step up to defend these areas of interest?
Bitcoin paused from its climb upon reaching the $42,500 mark, retreating back below the key $40,000 region.
Is this merely a correction from its recent surge? Is BTC/USD a buy or a sell?Price seems to be finding support around the 38.2% Fibonacci retracement of its latest rally, and the pullback could go all the way down to the 61.8% Fib around $34,000.
Technical indicators are suggesting that a deeper correction is underway, as Stochastic has room to slide before reaching the oversold region while the 100 SMA is below the 200 SMA. Is bitcoin oversold?
If any of the Fibs hold as support, bitcoin could recover to the swing high and beyond!
ETH busted through the neckline of the double bottom pattern we were watching last week, confirming that a reversal from the drop is due.
Price might need a quick retest of the broken resistance around $2,300 to gather more buying energy. This happens to be right smack in line with the 38.2% Fib, adding to its strength as support.However, Stochastic is suggesting that a larger pullback might follow, as the oscillator might just be starting to head south from the overbought zone.
The 61.8% Fib, which might be the line in the sand for a correction, is at $2,100 while the 50% level coincides with the 200 SMA dynamic support.
The faster-moving 100 SMA is still above the 200 SMA to confirm that support levels are more likely to hold than to break.
LTC broke above its descending trend line on the daily time frame, signaling that a reversal from the long-term downtrend is underway.
Buyers might need a quick break, though, as Stochastic is indicating overbought conditions and the moving averages made a bearish crossover.
Applying the Fib tool shows where bulls might charge again, with the 38.2% Fib close by around $132. A larger pullback could reach the 50% level near $127 or the 61.8% Fib at $121.44.
XMR also broke above a long-term resistance area to signal that buyers are taking over. Well, that is if the area of interest holds as a floor!
Bearish pressure might still pick up from here, as Stochastic has plenty of room to head lower before reflecting exhaustion among sellers.
The 100 SMA is above the 200 SMA, but the gap between the two has narrowed enough to indicate weakening bullish momentum.
A larger correction could dip to the 50% Fib at $214 or the 61.8% level at $205. A break below these support zones, however, could take XMR back down to the swing low near $180.
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