Time for another round of retracements for cryptocurrencies? Resistance levels seem to be holding so far, but more buyers might be waiting close by.
Bitcoin broke out of the range from the previous week to create new year-to-date highs, but it seems to be hitting a roadblock again. Price is at the top of an ascending channel forming on the 4-hour chart and might be due for a pullback to the bottom.
Applying the handy-dandy Fib tool shows that the 61.8% level is closest to the channel support around the $8,300 mark and is also near the moving averages. The 100 SMA is trying to maintain its lead over the 200 SMA to show that bulls have the upper hand, but stochastic has some room to head south to keep the correction going.
Ethereum is also hitting an upside barrier at the top of its range visible on the 1-hour time frame. If this keeps holding, price might fall back to the bottom of the range around $235.
However, the 100 SMA is above the longer-term 200 SMA to indicate that the path of least resistance is to the upside. In other words, resistance might be more likely to break than to hold.
Stochastic is also pointing up to suggest that bullish pressure might return while the 200 SMA is currently holding as dynamic support.
Litecoin is back in consolidation mode as it formed lower highs and higher lows inside a symmetrical triangle on its 1-hour chart. Price is at the top of the pattern, still deciding whether to make a bounce or a break.
Stochastic is heading up to show that there is some bullish energy left for a break higher while the 100 SMA is above the 200 SMA to support this view. However, the gap between the moving averages has narrowed to signal weakening bullish momentum and the oscillator is nearing overbought levels to reflect exhaustion.
XRP is finding support at an area of interest visible on the 1-hour time frame and might be due to bounce back to its swing high from here. This resistance-turned-support level lines up with the 100 SMA, 61.8% Fibonacci retracement level, and a rising trend line!Stochastic seems ready to move north so price might follow suit as buyers return. At the same time, the 100 SMA is increasing its lead over the 200 SMA to confirm that bullish momentum is picking up.
A break below the Fibs and the trend line around .4100, on the other hand, could lead to a reversal from this uptrend.
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!