Since the action is heating up in the cryptocurrency scene, I’ve added more altcoins to the mix of charts I’m watching. Take a look at these dope setups yo!
Bitcoin was unable to sustain its climb as a double top pattern formed on its 4-hour time frame and price slipped through the neckline. Bulls are trying to fight back, leading to a retest of the broken support.
The 100 SMA is still above the longer-term 200 SMA on this chart, which suggests that there might be some bullish pressure left. However, the gap between the moving averages is closing in, hinting at a potential downward crossover.
Stochastic is heading south, so bitcoin might follow suit. Note that the double top spans roughly $2,000 in height, which suggests that the resulting selloff could be of the same size.
Ethereum underwent stronger selling pressure in the past week but has since consolidated in a symmetrical triangle on its 1-hour time frame. Which way will it break out?
Previous price action suggests that this could be a bearish continuation signal, but it’s also worth noting that ethereum is near a long-term floor around $580. Moving averages are inching closer together to signal a possible upward crossover and reversal from the selloff as well.
Stochastic, however, is dipping into overbought territory. This means that buyers are feeling exhausted at this point and could let sellers win out. Watch out for a move below $675 if you’re waiting to short!
Litecoin followed through its downside triangle support break and is now trending lower inside a descending channel pattern. Price was once again rejected at the resistance, even forming a tiny double top pattern right there.
Sellers have yet to take litecoin below the pattern’s neckline and mid-channel area of interest to confirm the presence of bearish momentum, which might take price all the way down to the bottom or at least the previous lows.
First up with the new kids on the block! Bitcoin Cash is currently trending lower but seems to be ready for a classic break-and-retest situation on the 1-hour time frame.The 61.8% Fibonacci retracement level is closest to the descending trend line connecting the highs since mid-February and also coincides with the 100 SMA dynamic inflection point. Oh and did I mention that it lines up neatly with a former support zone, too?
The gap between the moving averages is widening to reflect strengthening bearish pressure while stochastic is heading south. If sellers are eager to hop in, the 38.2% Fib and the 100 SMA might be enough to keep gains in check.
Presenting another addition to the crypto gang… Ripple! XRP/USD is also in consolidation mode, forming lower highs and higher lows to create a symmetrical triangle on its 1-hour chart.
Price is closing in on the peak of the formation to indicate that a breakout is bound to happen sooner or later. Technical indicators like the moving averages and stochastic are hinting that a move lower is more likely to happen, but I’d be on the lookout for both directions just in case.
A move below 0.7625 could be enough to confirm a downside break while a rally past the .8050 level could signal that buyers have regained control.
A bit of fair warning, though. There is a considerable amount of risk in trading cryptocurrencies due to their inherent volatility and sensitivity to headlines. Be careful out there!