Finally some rallies! Bitcoin and its buddies followed through on earlier reversal patterns and could gain bullish traction from here.
Bitcoin bounced off that area of interest we were watching closely last week, completing its inverse head and shoulders reversal pattern. And by the looks of it, price also successfully busted through the formation’s neckline!
Now this chart pattern spans around $5,800 to $6,800, so the resulting uptrend could be of at least the same height. To add confirmation, the 100 SMA just crossed above the longer-term 200 SMA, likely drawing more buyers in.
Be careful, though, since stochastic is indicating overbought conditions and might be ready to move south and lead to a quick pullback.
Ethereum also appears to have broken above the neckline of its own reversal pattern, a double bottom on the 4-hour time frame. The moving averages have yet to complete a bullish crossover, but it’s good to note that the gap has narrowed to signal weaker bearish momentum.
The chart pattern spans $420 to $500, so the resulting climb could be of the same size. As with bitcoin, stochastic has reached overbought territory to reflect exhaustion among buyers at this point.
Litecoin is just about to attempt its own double bottom neckline break, which could send it higher by around $15 or the same height as the reversal formation.
The 100 SMA is still below the longer-term 200 SMA on this time frame, so the path of least resistance is to the downside. In other words, there’s a good chance the drop might resume. At the same time, stochastic is in the overbought region, which means that buyers could be running out of steam.
Nope you ain’t seeing double! Ripple’s price action does look like a duplicate of the earlier charts but yep, it’s got its own double bottom, too. Price is also just testing the neckline for now while stochastic seems to be suggesting that it ain’t time for a move higher yet.The 100 SMA is also below the longer-term 200 for now, which suggests that bears have some energy left in ’em. A bullish crossover, however, could encourage more buyers to hop in and sustain a climb.
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!