Bitcoin and its buddies are hitting a few roadblocks at the moment, creating consolidation patterns on their short-term charts.
Will we see a continuation of their rallies soon?
Bitcoin might need a brief pullback from its recent rally in order to sustain a move past the latest highs. Stochastic is heading lower, after all, which suggests that sellers are still in control.
Then again, the oscillator is nearing oversold conditions to indicate weakening bearish momentum. This could give an opportunity for buyers to regain the upper hand, possibly around the Fibonacci retracement levels.
In particular, the 61.8% Fib lines up with an area of interest around $7,750. If any of these levels keep losses in check, bitcoin could revisit the swing high soon or even create new ones.
Ethereum did find resistance around the $700 area then proceeded to move sideways to create a bit of a symmetrical triangle pattern.
Price is currently bouncing off support and might be due for a move back to the top around $690. Stochastic is suggesting otherwise, though, as the oscillator is pointing down to signal the presence of bearish pressure.
In that case, ethereum could break below the triangle support at $650 to start a longer-term drop. Note that the chart pattern spans $600 to $700 so the resulting selloff could last by the same height.
Litecoin bears could jump into action as price is forming a head and shoulders pattern on its 1-hour time frame. It has yet to break below the neckline around $142 to confirm that a drop is underway.
Stochastic appears ready to turn higher, however, indicating that buyers are about to return. Still, a confirmation of the reversal pattern could lead to a downtrend of the same height as the formation.
Ripple is still in consolidation mode but could be due for a breakout soon as price approaches the peak of the formation.
The triangle spans 0.7800 to 0.9500 so a breakout in either direction could lead to an extended move of the same height. Stochastic isn’t offering any clear clues, though, as the oscillator is on middle ground while on its way up.
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!