Down but not out! Bitcoin and its peers seem to have completed their pullbacks and are fighting to sustain the climb. C’mon, crypto bulls!
Bitcoin busted through that channel top we were watching last week, signaling that a reversal from the downtrend is underway. Price hit a roadblock near $7,800 and has since pulled back to the broken resistance.
It seems to have completed the retest from here and might be well on its way to the next upside targets marked by the Fibonacci extension tool. Strong bullish momentum could take bitcoin past the swing high and 50% level onto the full extension around $8,100.
The 100 SMA is above the longer-term 200 SMA to support the idea of further gains, but stochastic is hovering around overbought levels to indicate exhaustion among buyers.
Ethereum could also be in for an uptrend as an inverse head and shoulders pattern is forming on its 1-hour time frame. Price has yet to break past the neckline to confirm that a reversal is bound to happen.
Stochastic is also indicating overbought conditions on this one, but the 100 SMA is safely above the 200 SMA to show that buyers still have the upper hand. Also, the 200 SMA recently held as dynamic support and might continue to keep losses at bay in case ethereum dips again.
Slow and steady does it! Litecoin bulls are gradually getting back on their feet, creating higher highs and higher lows in a fresh ascending channel on the 1-hour chart.
Price just bounced off support and might be ready to test resistance, but the mid-channel area of interest is currently holding as a ceiling. At the same time, stochastic has made it to the overbought zone so sellers might still take it down for another test of the bottom.
The 100 SMA is above the longer-term 200 SMA to show that the path of least resistance is to the upside or that the uptrend is more likely to resume than to reverse.
IOTA hit a bump around the 2.00 area as expected, but it looks like bulls are defending the short-term area of interest around 1.75.
Stochastic looks ready to pull up from oversold territory so price could follow suit while buyers return. If that ain’t enough to take IOTA back to the swing high and beyond, then that slight bullish divergence might! See how price made higher lows while the oscillator had lower lows?
However, the 100 SMA is below the longer-term 200 SMA so there’s still some bearish pressure left. A break below the Fib levels could confirm that the longer-term downtrend is still intact.
Ripple is still in pullback mode as price is encountering resistance at the 38.2% Fibonacci retracement level. A higher correction might be possible since the 50% to 61.8% levels are closer to the support-turned-resistance zone.
Also, stochastic is pointing up to suggest that buyers are still in control for now. However, the 100 SMA is below the 200 SMA so there’s a good chance the longer-term drop might resume later on.
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!