It’s been an absolutely brutal bloodbath for bitcoin and its buddies over the past few days. Are we about to see a bottom anytime soon?
Bitcoin bears have been so busy painting the town red that the bottom of its long-term falling wedge visible on the daily chart has already been broken. This hints that further losses might be in the cards, possibly of the same size as the chart formation.
Selling momentum could stay in play as the 100 SMA remains below the longer-term 200 SMA to confirm that the path of least resistance is to the downside. However, stochastic is already indicating oversold conditions, so bitcoin might be able to pull up as sellers take a break. The gap between the moving averages is narrowing also, so bearish momentum could slow down.
Ethereum is also in breakdown mode as price tumbled below its symmetrical triangle support then confirmed a bearish flag continuation pattern.
Stochastic is starting to pull up from the oversold region to signal that buyers might be ready to return while sellers take a break. Price has already fallen by more than the height of the triangle formation after all, so a bounce might be due. However, the 100 SMA appears to be widening its lead below the 200 SMA to reflect strengthening bearish momentum.
Litecoin appears to be finding some support at the bottom of its short-term descending channel seen on the 1-hour time frame. Then again, the mid-channel area of interest is holding strongly as a ceiling, with buyers taking advantage of the latest bounce to jump ship at slightly better levels.
Stochastic is still pointing lower to signal that sellers have the upper hand, so a break below the channel support around $32 could be seen. At the same time, the 100 SMA is safely below the 200 SMA to suggest that support is more likely to break than to hold.
XRP has been one of the more resilient cryptocurrencies these days as it fights to keep its head above nearby support zones. Heck, it’s still within the symmetrical triangle consolidation on the 4-hour chart while the rest of its peers have been tumbling!
Also, the 100 SMA is above the longer-term 200 SMA on this chart, which suggests that support might still have a shot at drawing bullish bets. If so, a bounce back to the resistance could be seen soon, especially as stochastic inches close to the oversold region.
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!