Bitcoin and its buddies seem to be gaining a bit more traction on their rallies, so I’m looking at the next potential upside targets from here.
Do you think we’ll see another week in the green?
Bitcoin made an upside break from its earlier wedge pattern and now seems to be forming a double bottom. I don’t want to get too excited yet as price is barely halfway through its climb to the neckline, but oooh… Look how it just breezed through the 200 SMA!
The 100 SMA is still below this longer-term moving average, though, so there’s a chance the drop might resume at some point. Bulls gotta be careful also since stochastic has just reached overbought territory and might be looking to turn back down. This could bring bearish pressure back in and lead to a dip, possibly back to the lows around $5,800.
Then again, the gap between the moving averages is narrowing so a bullish crossover might be imminent. In that case, bitcoin could get more energy on its ascent to the reversal pattern’s neckline around $8,500.
Ethereum was already creeping above its symmetrical triangle top last week and it gained more momentum on the climb to confirm an upside break.
Buyers could have more room to take this higher since the chart pattern spans $250 to around $325, so the resulting uptrend could be of the same size. In addition, the 100 SMA is just crossing above the longer-term 200 SMA as of this writing to signal a pickup in bullish momentum.
Just be careful of jumping in a long position at market since stochastic is hovering around overbought levels and might head south again. In that case, a pullback to the broken triangle resistance, which might now hold as support, could be in order.
Litecoin also broke out of its short-term triangle pattern but appears to be facing several upside barriers from here.
In fact, LTC/USD is still in correction territory on the 4-hour time frame as it closes in on the 38.2% Fib and 200 SMA dynamic resistance. The 100 SMA is below this long-term moving average while stochastic is indicating overbought conditions, too.
With that, there’s a chance the drop could still resume at these nearby inflection points, including the 50% to 61.8% Fib levels that span a former support level that might hold as resistance.
Ripple made a strong upside break from a descending triangle on the 1-hour time frame to signal that further gains are in the cards. The 100 SMA has completed its bullish crossover, adding confirmation that buyers are regaining the upper hand.
However, stochastic is turning lower so price might follow suit and retreat to the correction levels before heading any higher. In particular, more buyers might be waiting around the 61.8% Fib as it lines up with a former resistance and is near the dynamic inflection points at the moving averages.
Now I don’t normally cover DASH in my tech analysis, but I think this particular altcoin might be worth paying attention to as it surged over 20% so far this week and confirmed a reversal signal.
I’m sure my buddy Forex Ninja will cover this in his Cryptocurrencies Weekly Digest, but lemme quickly share that move is being attributed to its partnership with Kripto Mobile Corporation. This makes it available to the Latin American region, which is home to a number of countries dealing with high inflation and rapidly depreciating currencies (cough, Venezuela, cough).
As you can see, price broke past a short-term descending triangle and also the neckline of a double bottom pattern before skyrocketing. It’s currently stalling at the 38.2% Fib but has been able to bust through the 200 SMA dynamic resistance.
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!