Aha! Finally some bullish breakouts! But wait a minute… Is bitcoin hogging the gains and leaving its altcoin peers behind?
Bitcoin made a sharp spike out of its symmetrical triangle consolidation, hinting that bulls are ready to keep charging. Even though the move was quickly faded, price has been able to stay above the triangle top to show that buyers are still in control.
For now, the moving averages are oscillating and have yet to catch up to the sudden upside move while stochastic is moving south to signal that profit-taking is underway.
But is that a continuation pattern I’m seeing? Bitcoin appears to have formed a bullish flag, so the climb might resume at soon, but this might also lead to a retest of the broken triangle top.
Ethereum also enjoyed a pop higher but its short-term downtrend remains intact as price fell back inside the descending channel. However, there are signs that buyers could attempt another rally.
The 100 SMA is below the longer-term 200 SMA to signal that the path of least resistance is to the downside or that the selloff is more likely to resume than reverse. Then again, the gap between the two is narrowing to reflect slowing bearish pressure and a possible crossover.
To top it off, stochastic is on its way up so ethereum might follow suit and test the resistance once more. Better keep your eyes peeled for a break past the $225 area as this might mark the start of a reversal.
Consolidation is still the name of the game for litecoin as it stayed confined inside its descending triangle visible on the 4-hour time frame. Price popped slightly past the top but the moving averages held as dynamic resistance.
Besides, the 100 SMA is crossing below the 200 SMA once more to indicate that bearish momentum is returning. Stochastic is also moving south, which suggests that sellers have enough energy to push for a move back to the triangle bottom.
Ripple fans, take note! XRP seems to have completed its retest of the broken long-term descending trend line, which means that bulls are setting their sights on the next upside targets.
Applying the Fib extension tool shows where these might be, with the 38.2% level right around the 0.6000 resistance and the 61.8% extension closer to the spike higher. The full extension is at 0.9276.
Technical indicators are lining up nicely for a possible ascent, too, as stochastic is heading out of the overbought region while the 100 SMA recently held as dynamic support. A move past the 200 SMA dynamic inflection point could be followed by a bullish crossover soon.
Just be warned, there is a considerable amount of risk in trading cryptocurrencies due to their inherent volatility and sensitivity to headlines. Be careful out there!