The lack of positive industry developments kept bitcoin and its buddies on the back foot for yet another week. Will the nearby support zones hold up?
Bitcoin selling pressure remains in play and seems to have intensified after its rejection at the new descending channel resistance. It didn’t help that FOMC member Kashkari had some negative remarks, too!
Price is currently testing the lows from last week and may be due to create new ones around the channel bottom. This lines up with the full extension marked by the Fibonacci tool.
The 100 SMA appears to be attempting an upward crossover but this effort might be foiled, confirming that bears could stay in control. However, stochastic is hovering around oversold levels, so there’s still a chance bulls could return at some point.
Ethereum is also trading inside a fresh descending channel, which has remained intact after the latest test of resistance.
Price is now closing in on the channel support as it has dipped below the previous lows while the 100 SMA remains below the longer-term 200 SMA to confirm that the downtrend could carry on.
Sellers could still book profits soon and spur a quick bounce as stochastic dips into oversold territory to reflect bearish exhaustion. But if downside pressure stays strong, a break of the channel bottom close to $600 could be possible.
Litecoin sellers are stepping up their game after breaking below a short-term rising channel, setting their sights on the longer-term channel bottom next.
A small head and shoulders pattern can also be seen, which suggests that bears could even take litecoin below the nearby support at $111.
The moving averages just completed a downward crossover to reflect a pickup in bearish momentum, but stochastic is indicating oversold conditions. Talk about mixed signals!
IOTA is trending lower also but consolidating in what appears to be a falling wedge pattern on its 1-hour chart. Price is nearing the peak of the formation, which suggests that a breakout is about to happen soon.
The moving averages seem to favor a downside move as the 100 SMA is below the 200 SMA, but stochastic is dipping into oversold territory to signal a return in bullish action.
Either way, the resulting rally or selloff could last by the same height as the wedge, which spans 1.60 to 2.70. Keep those eyes and ears peeled, fellas!
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!