I sense a bit of hesitation on recent rallies, but could these be mere retracements before trends gain momentum? See for yourself with these charts!
Bitcoin is at a make-or-break point as it hovers around the top of its descending triangle pattern and the bottom of an ascending channel.
A bounce off current levels could take it to the channel top and effectively past the triangle resistance, confirming that a longer-term climb is in the works. This rally might last by the same height as the triangle pattern, which spans $6,100 to around $8,500.
On the flip side, a break below the short-term channel bottom would signal that losses are in the cards, likely enough to take bitcoin back to the triangle support again. The 100 SMA is below the longer-term 200 SMA while stochastic is heading south, both putting the odds in favor of bearish action.
Ethereum didn’t gain much traction on its climb that appeared to be starting last week, forming higher lows and lower highs in a symmetrical triangle instead.
Price is back down to the triangle support around the $225 level and might be due for yet another bounce to the top. After all, the 100 SMA is above the longer-term 200 SMA to signal that the path of least resistance is to the upside.
At the same time, stochastic is moving north to reflect the presence of bulls. A slight bullish divergence can be spotted, too! Stronger bullish energy might even lead to an upside break and a resulting rally that’s the same height as the triangle formation.
Litecoin continues to cruise higher inside its ascending channel after bouncing off that support area last week. Another test of the bottom appears to be taking place, with the 61.8% Fib lining up with support once more.
The 100 SMA is still above the longer-term 200 SMA to suggest that the uptrend is more likely to resume than to reverse while stochastic pulling out of the oversold region also reflects a return in bullish pressure.
If the area of interest is enough to keep losses at bay, litecoin could set its sights back on the swing high at $65.730 or the channel resistance closer to $67.
Ripple seems to be losing momentum on its long-term upside break as it has recently crashed below the bottom of its rising channel.
A short-term reversal from the uptrend could be underway, although the 100 SMA remains safely above the longer-term 200 SMA to suggests that a bounce might still happen.
Stochastic has also dipped to the oversold region and turning higher could bring buyers back in. But if the broken channel support holds as a ceiling, Ripple could face more downside from here.
Monero just busted through the top of its descending triangle pattern, signaling that it’s ready to resume the ascent. However, moving averages are still oscillating to indicate range-bound conditions while stochastic is turning south to show that sellers still have some energy.
Then again, price is trading above the moving averages, which coincide with the broken triangle top and the bottom of the channel, adding to its strength as a floor. A continuation of the uptrend could take Monero to the channel top at $134 or at least the mid-channel area of interest around $127.
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!