I’m seeing some green, fellas! With longer-term levels holding, could this be a big rebound in the making or just mere pullbacks for bitcoin and its buddies?
Bitcoin bulls appear to have found reinforcements after recently defending the bottom of its longer-term falling wedge pattern. Price has broken above a short-term consolidation that looks like a sketchy inverse head and shoulders reversal pattern, too.
The 100 SMA is still below the longer-term 200 SMA, though, so there’s still some bearish momentum in play. However, bitcoin has climbed past the 100 SMA dynamic resistance and might be due to test the 200 SMA inflection point next.
Stochastic is heading north and has room to continue before hitting overbought territory, which suggests that buyers could have the upper hand for a bit longer.
Ethereum has formed lower highs and higher lows to consolidate inside a symmetrical triangle recently, but it looks like buyers are attempting a breakout.
Price is already testing the triangle top and inching above the dynamic resistance levels at the moving averages, suggesting that bullish pressure is picking up. Stochastic is also heading higher but is closing in on the overbought zone.
If resistance holds, ethereum could be due for another test of the triangle bottom near $280. A sustained upside break, on the other hand, could spur an uptrend that’s the same size as the triangle pattern.
Litecoin is also bouncing off a support area but is facing a few more upside barriers before gaining bullish traction. Price is still below a descending trend line on its 4-hour time frame, and the Fibs could keep rallies in check.
In particular, the 61.8% retracement level lines up with a former support area that might hold as a ceiling. This also coincides with the trend line and 200 SMA dynamic inflection point.
The good news for buyers is that stochastic just made its way out of the oversold region and has plenty of room to rise before indicating exhaustion among bulls. However, the 100 SMA is safely below the 200 SMA to indicate that the downtrend is more likely to resume than to reverse.
Ripple is also cruising below a descending trend line on its 4-hour chart and looks prime for a test. This is somewhere around the 50% Fibonacci retracement level and the 200 SMA dynamic resistance.
Although the 100 SMA is below the 200 SMA to suggests that resistance is more likely to hold than to break, stochastic is pointing up to reflect a return in bullish momentum. A move past the 61.8% Fib could be enough to confirm that buyers are putting up a stronger fight.
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!