Consolidation is still the name of the game for most of the cryptocurrencies, but quick pullbacks might be enough to draw more buyers in. Take a look!
Bitcoin is still testing the top of the triangle visible on a longer-term time frame as it slowly climbs inside a small ascending channel.
A break above the resistance may be in order as buyers keep defending nearby support zones, possibly resulting in a steeper climb. The 100 SMA is above the 200 SMA after all and is currently holding as dynamic support.
However, stochastic is pointing down to signal that a correction may be in order. This could take bitcoin to the 50% level near the mid-channel area of interest and 200 SMA or all the way to the 61.8% Fib at the bottom of the channel just slightly below the $4,000 mark.
Ethereum could be in for a rally, at least on its 1-hour time frame, as it formed a sketchy inverted head and shoulders reversal pattern.
Price has yet to break past the neckline around the $145 mark to confirm that an uptrend is due, possibly lasting by the same height as the chart pattern.
The 100 SMA is above the longer-term 200 SMA to indicate that resistance is more likely to hold than to break, but stochastic is still pointing down to suggest that sellers have the upper hand. Talk about mixed signals!
Litecoin is still hanging around the top of the broadening wedge formation we were looking at last week as buyers try to bust through the resistance.
The 100 SMA is above the longer-term 200 SMA to indicate that the path of least resistance is to the upside or that a break higher is likely. Stochastic has yet to reach the oversold zone to reflect exhaustion among sellers, but the oscillator already seems to be bottoming out.
If buyers need more backup, a pullback to the wedge support or the moving averages dynamic inflection points might take place first.
XRP has yet to pick a direction as it continues to cruise inside its symmetrical triangle pattern. Technical indicators are also giving mixed signals, so it could be anyone’s game from here!
Stochastic is heading lower without even reaching the overbought zone, suggesting that sellers are eager to return and push for a break below support. However, the 100 SMA is above the 200 SMA to show that support is more likely to hold than to break.
A candle closing below the triangle bottom could signal that XRP is in for a drop that’s the same height as the formation, which spans .3100 to .3300. Similarly a move past the resistance could be followed by a rally of the same size.
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!