Bitcoin and its peers are fighting to hold on to their gains while waiting for bulls to charge at these short-term inflection points.
Will we see a continuation of their rallies soon?
Bitcoin is still hovering around the support-turned-resistance area around $9,000, which might be the line in the sand for a downtrend correction.
In other words, a strong break past this area of interest could confirm that bulls have regained the upper hand and could take price to the swing high next. Note that the 100 SMA is above the longer-term 200 SMA to indicate that the path of least resistance is to the upside, and the short-term moving average is holding as dynamic support.
Price has also formed higher lows recently to signal that bullish momentum is building up. At the same time, stochastic looks ready to pull up from oversold levels. A move past $9,750 could keep the climb intact while a break below $9,000 could draw sellers back in.
Ethereum looks ready to bust its bullish moves once more as price bounced off the rising trend line visible on its 4-hour time frame.
The combo of resistance-turned-support and the 61.8% Fib right on the $700 major psychological mark and 100 SMA dynamic inflection point seemed enough to keep losses at bay. In that case, ethereum could be setting its sights back on the swing high near $840 and beyond.
The gap between the moving averages is widening to reflect strengthening bullish pressure while stochastic is heading north to show that buyers have the upper hand.
Here’s another classic pullback setup that’s just showin’ up on litecoin’s 4-hour time frame! Price is currently testing the channel support that coincides with the 61.8% retracement level and a former resistance.
The 100 SMA is above the longer-term 200 SMA and lines up with the area of interest to add to its strength as a floor. If it holds, litecoin could make its way back up to the channel top or at least until the mid-channel area of interest.
Stochastic is already dipping into oversold territory to reflect exhaustion among sellers but has yet to turn higher to show that buyers are ready to return.
Ripple has been in selloff mode recently but could be due for a bounce as it tests the bottom of its 4-hour range around the .8000 major psychological level.
Stochastic is already moving up to show that buyers are back in the game, but the moving averages appear to be attempting a downward crossover to show that bears are just getting started.
A break below support could take Ripple down by the same height as the range, which spans .8000 to .9300, while a bounce could bring it back to the top.
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!