Cryptocurrencies still seem to be stuck in their holding patterns, although some look poised for more upside. Any breakouts in sight?
Bitcoin is keeping its head above the area of interest we were looking at last week, setting its sights on the triangle top once more. A break above this resistance could be followed by a rally that’s around the same size as the triangle formation.
Technical indicators suggest that bulls have the upper hand since the 100 SMA is above the longer-term 200 SMA and stochastic is just pulling up from the oversold region.
If the resistance refuses to budge, bitcoin could sink back down to the triangle bottom around $3,500.
Ethereum is still in consolidation for the nth week as it hovers around the middle of its symmetrical triangle on the 4-hour time frame. If this area of interest keeps holding, price could make another attempt at breaking above the resistance.
Stochastic is heading higher to reflect the presence of bullish pressure while the 100 SMA is above the 200 SMA for now. However, the gap between the moving averages is narrowing to signal a potential pickup in selling pressure that could take price down to the triangle bottom.
Litecoin appears to be enjoying stronger volatility as it forms a broadening wedge pattern on its 1-hour time frame. Price bounced off the resistance and might be due for a pullback to the bottom near the 61.8% Fib.
Stochastic is already indicating overbought conditions and looks ready to head south, so price might follow suit. Still, the 100 SMA is above the longer-term 200 SMA to confirm that the path of least resistance is to the upside or that support levels are more likely to hold than to break.
XRP is also in consolidation mode as it formed lower highs and higher lows inside a symmetrical triangle pattern. Price is approaching the peak of the formation to signal that a breakout could be due anytime soon.The moving averages are currently oscillating to reflect range-bound action, but both are holding as dynamic resistance. Stochastic is pointing down to signal that selling pressure could kick in and lead to a potential break below support, which might spur a drop that’s the same height as the triangle.
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!