So much for those big spikes last week! Now it’s back to consolidation mode for bitcoin and its buddies while traders hold out for more catalysts.
Bitcoin is still in pullback mode from its earlier surge, retreating to the mid-channel area of interest on the ascending channel visible on its 1-hour time frame.
This happens to line up neatly with the dynamic support at the moving averages, but these indicators are barely providing any strong directional clues at the moment. Stochastic looks ready to turn higher, though, possibly indicating a return in bullish energy.
But if sellers are still in control, a larger dip to the actual channel support at $6,250 might be due before buyers return and attempt to sustain the uptrend.
Ethereum might be prime for a breakout soon as it approaches the very end of its symmetrical triangle on the 1-hour chart. Technical indicators are giving mixed signals on which direction it might pick.
The 100 SMA is below the longer-term 200 SMA to indicate that support is more likely to break than to hold, possibly resulting to a slide that’s the same height as the triangle. The 100 SMA is just above the triangle top, too, so it might serve as an extra layer of resistance.
On the other hand, stochastic is already heading north so ethereum might follow suit while buyers have the upper hand.
Another week, another triangle bounce! Litecoin is making its way back to the descending triangle bottom after recently hitting a roadblock at the top.
The 100 SMA is below the longer-term 200 SMA to suggest that this slide could carry on, possibly until the triangle support near $50. However, stochastic is already pulling up to hint that buyers are ready to return and push for another test of the top or perhaps an upside break.
Ripple appears to be having trouble sustaining its longer-term climb as it is now forming a descending channel on the 4-hour time frame. Price is still testing resistance and may have a shot at breaking higher as stochastic is pointing up and showing a bit of bullish divergence.
However, current levels are proving really tough to break. After all, this lines up with the moving averages’ dynamic resistance, the channel top, a former support area, and the 38.2% Fib at the .4700 mark.
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!