Bitcoin and its buddies are still hanging around current support levels for the nth week. Will we see a bit more action this time around?
Bitcoin bounced off the bottom of its descending channel seen on the 4-hour time frame once more, putting it on track to test the nearby resistance levels.
Stochastic has some room to climb before reaching the overbought region, so bullish pressure could stay in play. However, the 100 SMA is still below the longer-term 200 SMA to indicate that resistance is more likely to hold than to break.
Buyers could encounter roadblocks at these dynamic inflection points or the mid-channel area of interest that has held as a ceiling in the last couple of bounces.
Ethereum found resistance at the top of the descending channel on its 1-hour time frame and might be due to test the next downside targets marked by the Fibonacci extension tool.
Price is already down to the 38.2% level but could still slide lower to the 61.8% Fib near the mid-channel area of interest and swing low. Stronger bearish momentum could drag it all the way down to the very bottom of the channel and the full extension.
If bulls refuse to back down, though, a break past the channel top around the $109-110 levels could signal that a reversal is in the works. After all, the 100 SMA just crossed above the longer-term 200 SMA to hint that bulls could take control.
Litecoin is on slightly better footing these days as it bounced from the bottom of the range we were looking at last week and is now forming a rising trend line.
This short-term uptrend could gain some traction since the 100 SMA is above the 200 SMA and the gap between the moving averages is widening. Stochastic is approaching the overbought zone, though, and turning lower could bring a return in selling pressure.
If that happens, litecoin might still be able to find support at the Fib levels, particularly the 61.8% retracement that lines up with the trend line and 200 SMA.
XRP continues to hover around the mid-channel area of interest as it slowly edges down. Bulls and bears seem to be locked in a tight battle, and technical indicators are giving mixed signals, too.
The 100 SMA is below the 200 SMA, which suggests that the selloff is more likely to carry on than to reverse. On the other hand, stochastic is already indicating oversold conditions and is turning higher to indicate a return in bullish momentum.
With that, XRP could be poised to test the bottom of the channel if makes a strong break below the area of interest. If price is able to break past the dynamic inflection points at the moving averages, a test of the channel top might be due.
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!