Finally some signs of life! Bitcoin and its buddies appear to be gaining traction on their upside breaks, but are reversals in order yet?
Bitcoin broke out of the descending trend channel we’ve been watching for the past weeks, hinting that it’s finally ready to erase earlier losses.
Price also broke past the neckline of a double bottom reversal formation and is breaking higher from a bullish flag pattern, which is a classic continuation signal. More bulls might join in if the 100 SMA completes this looming upward crossover from the 200 SMA.
Be careful, though, as stochastic is already closing in on the overbought zone to indicate exhaustion among buyers. Turning lower could still trigger a quick pullback to nearby support zones.
Ethereum also busted out of its descending channel to show that a reversal from the earlier slide is already underway. Price is now closing in on the next support-turned-resistance area around the $110 mark while stochastic is approaching overbought territory.
However, a bullish crossover appears to be brewing and this would likely encourage more buyers to join in the fun. Ethereum also broke above its bullish flag pattern to signal that another leg higher is in the works.
Another coin, another upside break! Litecoin also made its way out of the descending trend channel to indicate that bulls are taking over.
The 100 SMA already completed its upward crossover from the 200 SMA on this one, indicating that the path of least resistance is to the upside or that the uptrend is likely to gain traction from here.
Stochastic is on the move up and has some room to cover before reflecting overdone conditions for buyers. This could give litecoin a bit more momentum to complete its breakout from a short-term consolidation pattern, too!
XRP also broke out of its short-term downtrend but may be facing nearby upside barriers. On the 4-hour time frame, a larger descending channel is forming and price is just pulling up to the mid-channel area of interest.
The 100 SMA is below the longer-term 200 SMA on this time frame to suggest that the selloff might still resume. To top that off, the 200 SMA dynamic resistance lines up with the next potential ceiling.
Stochastic is indicating overbought conditions to show that buyers are feeling tired and may let sellers take over. A break past this .3800 level, however, could put XRP on track to test the channel top.
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!