I’ve got retracements, ranges, and breakouts on today’s set! Take a look at how bitcoin and its buddies are doing these days.
Bitcoin is still on pretty strong footing, trading above a rising trend line connecting the lows on the 1-hour chart. Price found resistance at $5,682.50 and might be in the middle of a retracement.
The Fib tool shows that bitcoin already bounced off the 38.2% level and could be ready to move back up to the swing high or higher. The 100 SMA is above the longer-term 200 SMA to confirm that the path of least resistance is to the upside or that the climb is more likely to resume than reverse.
However, stochastic is still heading lower and has some room to go south before reaching oversold territory to signal exhaustion among bears.
Ethereum has formed lower highs and higher lows on its 1-hour time frame to create a symmetrical triangle formation. Price is testing support at the moment and could be due for a bounce back to resistance.
Stochastic looks ready to turn back up as it nears the oversold region, signaling that a return in bullish pressure may be in order. The 100 SMA is above the 200 SMA as well, but the gap is narrowing to suggest a possible takeover by sellers.
A break below the triangle support could set off a drop that’s around the same height as the chart pattern.
Litecoin recently broke below strong support around $76.650 and dipped to the $70.600 level before bouncing. A pullback to the broken support zone could follow from here while stochastic turns higher from the oversold region.
Sellers might be waiting around the 61.8% level that is right in line with the area of interest. The 100 SMA is still below the longer-term 200 SMA to indicate that the path of least resistance is to the downside or that these ceilings are more likely to hold than break.
XRP is still stuck in its descending triangle consolidation pattern on the 1-hour time frame but could be due for a breakout anytime soon. Technical indicators are giving mixed signals on direction, though.
The 100 SMA is below the 200 SMA to suggest that bears have the upper hand, and these dynamic inflection points line up with the triangle top. However, stochastic is turning higher after reaching the oversold region to show that buyers might regain control.
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!