Breakouts everywhere! Bitcoin and its buddies have been on a tear these days, so I’ve been scoping the charts for possible upside targets.
Bitcoin busted through that support-turned-resistance zone we were looking at last week, showing that bulls are coming out in full force. The 100 SMA is also completing a bullish crossover from the 200 SMA to confirm this.
If so, bitcoin could be on track to test the next upside target around the $9,000 area or closer to the resistance at $12,000. Just be careful since stochastic has been hovering around the overbought region for quite some time, reflecting exhaustion among buyers.
Ethereum followed through on its short-term consolidation break higher and is now trading way past the top of its rising wedge formation seen on the daily time frame.
This could set off an uptrend that’s around the same height as the wedge pattern, especially since the 100 SMA has crossed above the longer-term 200 SMA. This hints that the climb is more likely to gain traction from here, although stochastic is closing in on the overbought zone.
Litecoin bulls showed they ain’t done charging yet as price surged past a key resistance area around the $85 level. Price has also since completed a retest of this broken ceiling that held as a floor.
The 100 SMA is also holding as dynamic support as it moves above the 200 SMA to reflect the presence of bullish momentum. This could take litecoin up to the next upside targets marked by the Fibonacci extension tool.
Litecoin is already testing the 38.2% level but might still have enough energy to make it to the 50% level near the swing high or the 61.8% level at $97.24. The full extension is located at $105.26.
XRP finally made a convincing break above its long-term descending triangle, signaling that more gains might be in the works. Price has also climbed above both moving averages, but these indicators have yet to make a bullish crossover to confirm a trend.
Stochastic is moving north, so price might follow suit while bulls are in control. However, this oscillator is also approaching the overbought region to suggest that buyers might need to take a break soon.
In that case, be on the lookout for a possible pullback to the broken triangle top or the dynamic support levels at the moving averages.
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!