It’s all about trends and retracements on the crypto charts today! Oh, and I’ve spotted some potential break-and-retest plays, too. Take a look!
Bitcoin continues to trend higher on its 4-hour time frame and looks prime for another leg up as it just broke past the mid-channel area of interest. This could pave the way for a move all the way to the top around the $6,000 major psychological resistance.
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 likely to carry on. However, the gap between the two is narrowing to reflect weaker bullish momentum. Also, stochastic has reached the overbought territory and could turn south.
Ethereum has been cruising lower inside a descending channel visible on its 1-hour chart and is testing the resistance, possibly deciding whether to make a bounce or a break.
A bounce could take it back down to the channel bottom around $145 or at least until the mid-channel area of interest at $155. The 100 SMA is below the 200 SMA for now to indicate that resistance is more likely to hold than to break while stochastic looks ready to move down from the overbought zone.
Litecoin recently busted through a short-term descending trend line to indicate that a reversal from the downtrend is in order. Bulls are hitting a roadblock, though, and might need a retracement before charging again.
Applying the handy-dandy Fib tool on the latest swing low and high shows that the 61.8% level lines up with the broken trend line while the 50% to 38.2% levels span an area of interest.
This is also around the dynamic inflection points around the moving averages, so plenty of traders must be watching those levels. The 100 SMA is below the 200 SMA while stochastic is indicating overbought conditions, so the odds are leaning towards sellers for now.
XRP is trending lower inside a descending channel and is testing the top, which happens to line up with the 61.8% Fib and a former support zone. If this holds as resistance, price could resume the drop to the swing low or the channel bottom.Stochastic just reached the overbought zone to signal exhaustion among buyers and is turning back down to suggest that sellers are ready to 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!