Finally, some signs of life! Bitcoin and its buddies are seeing some green these days and might even climb past these nearby resistance levels.
Bitcoin was able to surge past the mid-channel area of interest we were looking at last week and above the dynamic inflection points at the moving averages. Bulls are back, baby!
Price is hitting a roadblock at the top of the descending channel on the 4-hour time frame as buyers might be gathering more energy for an upside break. The short-term consolidation looks like a bullish flag pattern, which is considered a continuation signal.
If bulls are able to charge past the channel top, a rally of the same height as the flag’s mast could follow. Stochastic is already turning higher without hitting the oversold region, hinting that buyers are eager to return.
Ethereum is attempting to close above the top of the descending channel visible on the daily time frame. If this pushes through, a reversal could follow!
Before that happens, price would need to clear the barrier at the 100 SMA dynamic resistance. This moving average is below the longer-term 200 SMA to indicate that the path of least resistance is to the downside or that the selloff is more likely to resume than to reverse.
At the same time, stochastic is approaching the overbought region to reflect exhaustion among buyers. Turning lower could lead ethereum price to follow suit as sellers regain control.
Litecoin was also on a tear as price made a sharp bounce off the bottom of its ascending channel and zoomed all the way to the top. This gave buyers enough reason to pause, so a pullback to the Fib levels might be due.
The 50% level lines up with the mid-channel area of interest and is near the $40 major psychological support where more bulls might be hanging out. A larger correction could reach until the very bottom of the channel near the SMAs.
The 100 SMA has just crossed above the longer-term 200 SMA to signal that bullish momentum is building up. At the same time, stochastic is turning higher to show that buyers are back in the game.
XRP seems to be behind the pack when it comes to the latest rallies as price is just consolidating inside a symmetrical triangle.
Support is holding quite nicely, though, so a move back to the triangle top around 0.3200 could take place. The 100 SMA is also above the 200 SMA to indicate that support is more likely to hold than to break.
However, stochastic is ready to turn south and price might follow suit as sellers return. This could lead to another test of the triangle bottom near the 200 SMA dynamic inflection point or perhaps a break lower.
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!