Bitcoin and its buddies are struggling to gain momentum while waiting for fresh catalysts these days. Any chance for more upside?
Bitcoin has formed higher highs and higher lows inside a rising wedge formation on its 1-hour chart. Price is currently testing support, still deciding whether to make a bounce or break.
The 100 SMA is below the 200 SMA for now but looks prime for a bullish crossover, which might mean that support is more likely to hold than to break. A bounce off this level could take bitcoin back up to the wedge resistance, but stochastic turning down from the overbought zone seems to be suggesting otherwise.
Ethereum appears to have formed a complex head and shoulders pattern on its daily time frame, signaling that a reversal is in the works. A break below the neckline support could be enough to spur a drop that’s the same height as the chart formation.
However, the 100 SMA is safely above the longer-term 200 SMA to indicate that the path of least resistance is to the upside. To top it off, the gap between the indicators is widening and the 200 SMA might keep holding as dynamic support!
Stochastic is also turning higher after a brief dip to the oversold region to show that bullish momentum is picking up.
Litecoin is still in selloff mode as price is cruising with lower lows under a descending trend line on the 1-hour chart. Resistance still seems to be holding, and the Fibonacci extension tool shows the next potential downside targets.
Stochastic looks ready to turn south to confirm that sellers might return and take litecoin to the 38.2% extension that lines up with the swing low around $71.50. The 100 SMA is below the 200 SMA to reflect downside momentum as well, but a bullish crossover might be brewing.
XRP might be in for a bounce as price made lower lows while stochastic had higher lows, creating a bullish divergence on its daily time frame. However, the upside could be limited as price recently fell through a shallow rising trend line.The Fibonacci retracement levels might also keep gains in check, particularly the 38.2% level that’s close to the broken trend line. The 50% Fib might also serve as resistance since it lines up with the 100 SMA dynamic inflection point.
Still, the 100 SMA is above the longer-term 200 SMA for now to indicate that bullish momentum is present.
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!