Bitcoin has barely looked back from its climb while its crypto buddies still seem to be in pullback mode. Could these be good entry opportunities?
Bitcoin bulls keep charging to new year-to-date highs, spurring a major case of FOMO among market participants. However, price has just arrived at another long-term area of interest that might lead to some profit-taking.
The 50% retracement level on the weekly time frame lines up with a former support turned resistance area around $11,500 so it won’t be surprising if bears are waiting right here. At the same time, stochastic has been indicating overbought conditions for quite some time, possibly allowing selling pressure to take over.
Ethereum busted through a key resistance level around $275 but bulls hit a roadblock around $322. A pullback might be needed to draw more buying energy to sustain this rally, especially since stochastic is starting to make its way south.
Applying the handy-dandy Fib tool on the latest swing low and high shows that the 50% level lines up with the broken resistance that might hold as support. The 100 SMA is still above the 200 SMA after all, so the path of least resistance is to the upside.
Litecoin has been in selloff mode but seems to be finding some support at current levels. Price is forming a rising channel with its higher lows and higher highs on the 1-hour chart, and stochastic is pointing up to suggest that buyers could still take over.
The 100 SMA is also above the slower-moving 200 SMA to indicate that support is more likely to hold than to break. In that case, litecoin could still bounce to the mid-channel area of interest around these moving averages or the channel top around $148.
XRP has been moving sideways in a small triangle consolidation pattern but is also in the middle of an uptrend pullback. The 61.8% Fibonacci retracement level is holding as support near the rising trend line on the 1-hour chart and the 200 SMA dynamic inflection point.
The 100 SMA is above the longer-term 200 SMA to indicate that the climb is more likely to gain traction than to reverse. Also, stochastic is heading north so price might follow suit while buyers have the upper hand.
In that case, XRP could recover to the swing high at .5100 and beyond. A break below the area of interest around .4500, on the other hand, could spur 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!