Were those crypto rallies just too good to last? Or can bitcoin and its buddies make another attempt to break past these upside barriers?
Bitcoin tumbled below the support of its ascending channel on the 1-hour time frame, hinting that a reversal from the short-term climb is in the works.
The 100 SMA also made a bearish crossover from the 200 SMA to confirm that the selloff might gain traction from here. However, stochastic is indicating oversold conditions or exhaustion among sellers, so a pullback might follow.
The handy-dandy Fib tool shows that the broken channel support lines up with the 61.8% level while the 50% Fib coincides with an area of interest.
Ethereum also broke below its rising channel support and might be due for a retest soon. After all, stochastic is already turning higher from the oversold region to show that bulls might take over from here.
The 50% Fibonacci retracement level lines up with the broken channel bottom while the 61.8% Fib is closer to the dynamic resistance at the moving averages. The 100 SMA is below the 200 SMA to show that these upside barriers are more likely to hold than to break, possibly sending price back to the swing low or lower.
Litecoin seems to be holding its ground much better than its peers as the ascending channel support is still holding like a boss. If this keeps up, price could make its way back to the channel top or the upside targets marked by the Fib extension tool.
Stochastic is already pointing back up without even reaching the oversold region, hinting that buyers are eager to return. With that, litecoin might bounce to the 38.2% level that’s close to the mid-channel area of interest or to the 61.8% Fib that lines up with the swing high.
XRP has been pacing back and forth inside a range, finding support at .3650 and resistance at .4650. Price is more than halfway through on its move to the range bottom, and the bearish moving average crossover suggests that this drop could carry on.
However, stochastic already made it to the oversold region and has pulled back up, indicating that buyers might return from here. In that case, another test of the range top might take place.
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!