It looks like crypto bulls are struggling to stay in the game, as bitcoin and its buddies might be setting their sights lower again.
Bitcoin still seems to be in correction mode as price dipped below the 38.2% level and is hovering at another area of interest. The 50% Fib lines up with a former resistance level, which might hold as support from here.
Stochastic is already indicating oversold conditions and might be ready to turn back up to signal a return in bullish pressure. However, the 100 SMA recently crossed below the longer-term 200 SMA to indicate that the path of least resistance is to the downside.
With that, a larger correction to the 61.8% level might be in order, although a break below this could drag bitcoin back to the swing low near $9,000.
Ethereum recently slipped below the bottom of an ascending triangle on its 4-hour time frame, possibly leading to a drop that’s the same height as the formation.
Price already completed the retest of the broken triangle bottom, which lines up with the 100 SMA dynamic inflection point. This indicator is below the faster-moving 200 SMA to indicate that the selloff is likely to gain traction from here.
Stochastic has some room to head lower before indicating oversold conditions, which means that sellers might take price further south to the Fib extension levels.
Litecoin recently tumbled below support around the $90 mark and seems to have completed its retest of this area. Price could resume the slide to the Fib extension levels from here.
At the same time, the 100 SMA is below the 200 SMA to indicate that the path of least resistance is to the downside. On the other hand, stochastic seems to be turning higher to indicate that bullish momentum might still return.
XRP also recently tumbled below support at the .3050 area, which held as resistance on the pullback. Price is closing in on the 38.2% extension at the .2900 mark that also lines up with the swing low.Stronger selling pressure could kick in as the 100 SMA remains below the 200 SMA and has held as dynamic resistance. This could take XRP to the lower extension levels, possibly even until the full extension at .2651.
Stochastic is heading higher, though, so price could follow suit as buyers take control and form slightly higher lows.
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!