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?
BTC/USD: 4-hour
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.
ETH/USD: 1-hour
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.
LTC/USD: 4-hour
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.
BCH/USD: 1-hour
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.
XRP/USD: 4-hour
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!
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