Another set of not-so-positive updates in the cryptocurrency world has weighed heavily on bitcoin and its peers.
Can these declines last any longer?
Bitcoin has formed lower highs and higher lows, creating a symmetrical triangle visible on its 4-hour time frame.Price recently bounced off support but didn’t have enough bullish momentum for a test of the top. Is a downside break in the cards?
A bit of bullish divergence can be seen as stochastic made lower lows while bitcoin made slightly higher lows, signaling that a bounce is still possible.
If a break happens, though, bitcoin could fall by the same height as the triangle, which spans $6,000 to around $13,000.
Ethereum bears still keep on keepin’ on as price appears to be gaining more downside momentum. The descending channel on its 1-hour time frame remains intact and a test of the support or at least the mid-channel area of interest is up next.
Stochastic is on its way up to show that bulls could still put up a fight, but the oscillator also seems to be changing its mind halfway through.
A break below the middle of the channel in line with the latest swing low could pave the way for a steeper slide all the way down to the bottom.
Litecoin could pause from its slide as it tests the mid-channel area of interest while stochastic indicates oversold conditions.Pulling higher could lead to a bounce up to the resistance but a break below the current levels could lead to a slide to the very bottom around 105.00.
If litecoin bulls come back with a vengeance, a break past the channel resistance is also possible, leading to a reversal from the drop.
Bitcoin Cash recently slumped below support at $1150 and fell to a low of $915.69 before making a pullback.
Applying the Fib tool on the latest swing high and low shows that the 61.8% level lines up with the area of interest where plenty of sellers might be waiting.
Stochastic is already turning south from overbought territory to reflect a return in bearish pressure.
This could allow the 38.2% Fib to keep gains in check and push price back down to the swing low or lower.
Ripple failed to break past the inverse head and shoulders neckline in the previous week, falling back to support to create a descending triangle instead.A downside break seems possible as price tests the support while stochastic is pointing down.
In that case, Ripple could be due for a drop of the same height as the triangle pattern, which spans 0.5800 to 0.8300.
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!