Bitcoin and its buddies seem to be finding support at areas of interest after their recent rallies. Are they ready for another bullish run?
Bitcoin seems to be done with its pullback as it made a pretty strong bounce off the $10,000 area. A larger correction might still make its way down to the rising trend line on the 4-hour chart or the 200 SMA dynamic support.
The 100 SMA is above the 200 SMA on this time frame to indicate that the uptrend is more likely to resume than to reverse. In that case, bitcoin could recover to the next upside targets marked by the Fib extension tool.
At the same time, stochastic has pulled out of the oversold region and is making its way up to show that buying pressure is returning.
Ethereum also seems to be completing the retest of the broken resistance level we were looking at last week. A bounce off this area of of interest could take price back up to the swing high around $360 that lines up with the 61.8% extension level.
The 100 SMA is above the 200 SMA, which held as dynamic support, to signal that support is more likely to hold than to break. Stochastic is on the move up as well, confirming that sellers are taking it easy and allowing buyers to take over.
Litecoin still seems to be on the fence when it comes to making a bounce or a break off its ascending channel support. A bounce could take it back up to the channel top around $150 or until the mid-channel area of interest while a break lower could set off a downtrend.
Stochastic is turning higher after a brief dip to the oversold region, so price might follow suit. The 100 SMA is above the 200 SMA, but the gap between the moving averages is narrowing to reflect weakening bullish momentum.
XRP is testing support at the bottom of its ascending channel on the 4-hour time frame. If the floor holds, price could return to the top of the channel around $0.4900 or the middle around $0.4500.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, support is more likely to hold than to break.
At the same time, stochastic made higher lows while price had lower lows, creating a bullish divergence that could encourage more buyers to join in.
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!