Support levels seem to be holding for bitcoin and its peers, and I might be seeing some upside breakouts on short-term charts. Check ’em while they’re fresh!
Bitcoin bulls are still defending support around the $6,300 mark, which happens to be right on the bottom of a small symmetrical triangle. This is also slightly above the longer-term descending triangle bottom.
There could be a chance for more buyers to join in as stochastic is starting to climb its way out of the oversold region, indicating a return in bullish pressure that might take it back to the resistance near $7,000.
However, the 100 SMA is safely below the longer-term 200 SMA on the daily time frame to confirm that the path of least resistance is to the downside. In other words, the floors might be more likely to break than to hold.
Ethereum seemed headed for doom last week, but higher lows have just recently formed, enough to create a triangle consolidation pattern on the 1-hour time frame.
The 100 SMA is above the longer-term 200 SMA, so there could be a chance for more bullish moves. Stochastic is also on the move up, so ethereum could follow suit. If price is able to breach the triangle top around $220, it might be in for a rally that’s the same height as the chart formation!
Litecoin also looked set on its southbound route earlier on, but it now seems to be forming a double bottom. Now this ain’t the most perfect of reversal formations, what with its tilted neckline, but the higher lows suggest that bulls are working harder!Buying momentum might stay in play while the 100 SMA stays above the longer-term 200 SMA, but there could be room for another dip as stochastic heads down from the overbought region. Also, price would need to clear the barriers at the moving averages before attempting to test the neckline and confirm the reversal signal.
Breakout alert! Ripple just busted through the top of its descending channel that had been holding for nearly three months already. A few more gains until the .3500 area and it could form a double bottom pattern, too.
With that, a reversal may be in order from here as stochastic has room to climb before indicating overbought conditions. However, the 100 SMA is still below the longer-term 200 SMA, so there might still be a chance for the selloff to resume.
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!