Cryptocurrencies are just cruising by these days, perhaps considering a turnaround or just taking a break from their earlier runs. Here are the levels to watch.
Bitcoin is taking its slow after its sharp climb earlier this month, moving steadily inside a newly-formed ascending channel on its 1-hour chart. Price just bounced off the bottom and is now testing the mid-channel area of interest.
If this level holds as resistance, bitcoin could retreat back to the channel support around $5,100. A break past the $5,250 area, on the other hand, could take price to the very top of the channel at $5,500-$5,600.
The 100 SMA is below the longer-term 200 SMA to hint that a move lower might be more likely to happen, and stochastic is indicating overbought conditions to reflect bullish exhaustion, too.
Ethereum did pull back from that channel resistance we were watching last week, and it found support at the Fib retracement levels around the bottom of the same channel. Applying the Fib extension tool shows where bulls might take price next.
The 100 SMA is above the longer-term 200 SMA to add confirmation that the uptrend is more likely to gain traction than to reverse. Price is also starting to climb back above the 100 SMA so it might hold as dynamic support from here.
The 38.2% extension level is located at the mid-channel area of interest and may be the first take-profit point. The swing high lines up with the 61.8% Fib at $190 and might also convince buyers to book profits. Stronger bullish pressure could take ethereum to the full extension at $211.27 beyond the channel top.
Litecoin might be thinking of another big rally as it forms a double bottom reversal pattern on the 1-hour time frame. Price has yet to test and break past the neckline resistance, though, so there’s no confirmation of an uptrend just yet.
Also, the 100 SMA is below the 200 SMA while stochastic looks ready to move south from the overbought region, indicating that sellers have the upper hand. If the 200 SMA keeps holding as dynamic resistance, price could revisit the lows or make new ones.
XRP seems to be in the middle of a big decision as it weighs whether to break below the ascending channel support or to make another bounce. Technical indicators seem to be in favor of a bullish move this time.
For one, stochastic is heading north to signal a return in bullish momentum, so price could follow suit. The 100 SMA is also above the 200 SMA to show that support is more likely to hold than to break.
In that case, XRP could recover to the mid-channel area of interest around .3525 or to the top of the channel at .3825. A break below .3200, on the other hand, could mark the start of a downtrend.
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!