Price action is looking mixed for bitcoin and its buddies, with some stuck in consolidation and others looking at potential upside targets.
Bitcoin has formed higher lows and higher highs to create a rising wedge pattern on its 1-hour time frame. Price is currently testing the resistance and might be due for an upside break.
If so, this might be followed by a rally that’s at least the same height as the chart pattern. The 100 SMA is still above the 200 SMA to indicate that the path of least resistance is to the upside or that the top of the wedge is more likely to break than to hold.
Then again, stochastic is already making its way to the overbought zone to indicate that buyers are exhausted. If sellers take over, another dip to the wedge support around $12,000 could take place.
Ethereum looks ready to resume its climb as it bounces off the area of interest that coincided with its rising trend line support on the 4-hour time frame.
Price is closing in on the 38.2% Fibonacci extension level at $325.15, which might already be enough to keep gains in check while stochastic makes its way down from the overbought zone.
Sustained bullish momentum, however, could still take ethereum to the next upside targets. The 50% extension is located at $341.30 while the 61.8% level is at $357.43, and the full extension is at $409.74.
Litecoin made lower highs and higher lows to create a symmetrical triangle visible on its 4-hour time frame. Price is heading close to the edge of the formation, which means that a breakout might happen anytime now!The 100 SMA crossed below the longer-term 200 SMA to hint that support is more likely to break than hold, possibly setting off a drop that’s the same height as the chart pattern.
Stochastic has room to head lower to signal increased selling pressure but is also closing in on the oversold region to reflect exhaustion.
XRP recently broke below the bottom of its rising channel on the 4-hour time frame to indicate that a reversal from the climb is in the works. Price might be on its way to the next downside targets marked by the handy-dandy Fib extension tool.
The first target is located around .3654, followed by the 50% Fib near the .3400 handle. Stronger selling pressure could take XRP down to the 61.8% extension at .3244 or the full extension at .2726.
Stochastic has some room to head lower before indicating oversold conditions, which means that bearish pressure is still in play.
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!