It’s back to consolidation mode for bitcoin while its other crypto peers seem to be setting their sights lower. Will we ever see a big rebound from here?
Bitcoin is still stuck around the bottom of its ascending channel after that bounce last week, showing some signs of hesitation as it consolidates.
Price has formed lower highs and higher lows to create a triangle pattern, and an upside breakout would help in confirming that a continuation of the climb is underway.
However, the 100 SMA is below the longer-term 200 SMA to indicate that resistance is more likely to hold than to break while stochastic seems ready to move back south. A break below the channel and triangle support around the $6,300 levels could signal that a downtrend is possible.
Ethereum appears to be gaining some traction on its climb after breaking above a triangle pattern earlier on. However, a pullback might be needed to get more buyers to join in.
Applying the handy-dandy Fib tool on the latest rally shows that the 61.8% level lines up with an area of interest where bulls might be waiting. A larger pullback could draw support at the shallow rising trend line closer to the $198 level.
Stochastic is heading lower to signal the presence of selling pressure, but the oscillator is approaching the oversold region to signal exhaustion. Turning higher could spur a bounce, possibly from the current Fib level.
Litecoin appears to be setting its sights back down as a fresh descending channel is forming on its 4-hour time frame. Price already bounced off the top and may be setting its sights on these downside targets.
The Fibonacci extension tool on the latest bearish pullback shows that the 50% level lines up with the mid-channel area of interest while the 61.8% level is closer to the swing low. The 100 SMA is below the longer-term 200 SMA to suggest that sellers have the upper hand and could keep the slide going.
XRP could be ready to resume its ascent as it tries to keep its head above the mid-channel area of interest visible on the 4-hour time frame.
If this area is enough to keep losses at bay, XRP could bounce back to the top of the channel that lines up with the 61.8% Fibonacci extension. Stronger bullish momentum might even carry it up to the full extension at .6187.
The 100 SMA is above the longer-term 200 SMA to indicate that the uptrend is more likely to resume than to reverse, but stochastic turning lower signals that a test of the channel support might still be in order.
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!