So far, so good! Bitcoin and its peers have managed to stay afloat and might actually be gaining bullish traction. I’ve also got this long-term trend line break you wouldn’t want to miss.
Bitcoin is still in the middle of completing its double bottom formation, which is considered a classic reversal signal, on its 4-hour chart.
What might encourage bulls to make one big push until the neckline around $8,500 is the bullish moving average crossover that’s just materializing. Stochastic even made a turnaround on its southbound direction, indicating that buyers have returned to sustain the climb.
Keep in mind that a break past the reversal pattern’s neckline could set off a longer-term uptrend, which might last by the same size as the chart formation.
Ethereum bears returned to put the cryptocurrency back in consolidation mode, trading inside a larger symmetrical triangle still on the 1-hour chart.
The 100 SMA is still above the longer-term 200 SMA to signal that support might keep holding. These moving averages are also near the bottom of the triangle to add to its strength as a floor, but the gap is pretty narrow so a bearish crossover could happen anytime soon.
Stochastic is on the move down and has room to slide before hitting oversold levels, which means that sellers might still have some energy to push for a break lower. In that case, ethereum could tumble by the same height as the triangle pattern.
Litecoin is slowly getting back on its feet as it stayed within the ascending channel forming on the 1-hour chart. Price also bounced off the mid-channel area of interest in the latest pullback and pushed past the swing high, indicating that buyers are getting stronger.
However, stochastic is pointing down to signal that selling pressure might return and lead to another correction. The Fibonacci retracement tool shows that the 38.2% to 50% levels span an area of interest or resistance-turned-support zone.
Bulls could get some assurance from the fact that the 100 SMA is still above the longer-term 200 SMA, which suggests that the uptrend is more likely to resume than to reverse.
I don’t cover Monero very often in my cryptocurrency tech analysis, but I thought y’all would like to know that it just made a significant upside break past its daily descending trend line.
Now this trend line had been in place since the coin’s conception (coinception?) so this breakout could be a big deal, especially since it comes after a report by an ICO research group predicted that Monero could hit $1,476 next year and nearly $40,000 over the next 10 years.
If that ain’t enough to get Monero bulls charging, I don’t know what will! Just be careful since stochastic is already indicating overbought conditions, and the 100 SMA is still below the 200 SMA on this time frame.
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!