Are my eyes deceiving me or are we really seeing stronger defense from crypto bulls these days? Take a look at how support levels are holding on these charts.
Bitcoin seems to be slowly gaining bullish momentum as it is forming a short-term ascending channel after bouncing off the longer-term triangle support.
Price is currently testing the channel bottom and might be due for another bounce to the top, which is right around the triangle top at $6,775. A break past this area could mark the start of a long-term climb, but technical indicators are giving mixed signals.
The 100 SMA is below the longer-term 200 SMA to suggest that the path of least resistance is to the downside, but stochastic is indicating oversold conditions with a slight bullish divergence to boot.
Ethereum also seems to be getting back on its feet as it formed higher lows and higher highs inside an ascending trend channel on the 1-hour chart.
A test of the channel support is currently taking place, and buyers seem to be defending this level as it lines up with a former resistance, too. The 100 SMA is above the longer-term 200 SMA to indicate that the uptrend is more likely to resume than to reverse.
However, the gap between the moving averages looks ready to shrink, reflecting slower bullish energy. Also, stochastic has just hit overbought territory to signal exhaustion among buyers.
Litecoin seems to have already busted through the double bottom neckline highlighted in the previous week, confirming that an uptrend is in order.
A retest of the broken neckline is taking place, and this coincides with the bottom of a newly formed rising channel. The 200 SMA also appears to be holding as dynamic support and is below the 100 SMA to suggest that bulls are in control.
Selling pressure might still return, though, since stochastic is already dipping into the overbought region.
After that sharp upside breakout last week, Ripple has faded the move and bulls appear to have found more buddies at the .4500 area of interest.
Applying the Fibonacci extension tool on this correction shows the next potential upside targets. The 38.2% level is right around the .6400 resistance while the 61.8% extension lines up with the spike higher to .7678. Stronger bullish momentum could take Ripple up to the full extension all the way at .9731.
The 100 SMA just crossed above the 200 SMA on this time frame to indicate that buyers are just getting warmed up. Stochastic is also turning higher to reflect a return in bullish pressure.
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!