So much for those reversal hints last week! Bitcoin and its buddies are stuck in triangle consolidation patterns while traders figure out their next moves.
Bitcoin is still hovering close to its earlier lows as it creates a symmetrical triangle visible on the 1-hour time frame. Support just held, which means price could be aiming for the top once more.
However, a bearish crossover appears to be looming, likely indicating that sellers are about to gain control of the game. If so, another test of support may be in the works or perhaps a break lower, sending bitcoin lower by the same height as the chart pattern.
Stochastic is approaching the oversold region to signal that bears might need a break soon and allow buyers to take over, but price would need to bust through the dynamic inflection points at the moving averages to keep up its climb.
Ethereum doesn’t seem ready to break out of its double bottom anytime soon as price is also stuck in a triangle consolidation pattern.
Price is just starting to bounce off support but is encountering some roadblocks at the dynamic resistance levels at the moving averages. At the same time, stochastic is heading south while the 100 SMA has just completed a bearish crossover.
Another test of the triangle bottom may be in the works and a break lower could signal that further losses are in the cards. Yikes!
Litecoin is taking things slow after breaking out of its descending channel last week, now forming lower highs and higher lows inside a symmetrical triangle pattern.
A bounce off support is taking place while stochastic dips into the oversold region, indicating that buyers are ready to take over. If so, they’d need to push past the dynamic inflection points at the moving averages on the way to the triangle top.
XRP ain’t one to get left behind as it also formed its very own triangle consolidation pattern! In its case, a descending triangle can be seen on its 1-hour time frame with support at .3400 and lower highs.
The 100 SMA is below the longer-term 200 SMA right around the top of the triangle to confirm that resistance is more likely to hold than to break. Stochastic is also heading south so XRP might follow suit, but the oscillator is closing in on the oversold region so a bounce may be due. Keep an eye out for a potential breakout on this one, too!
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!