Back to consolidation mode again, you guys! Bitcoin and its buddies are stuck inside triangle patterns, waiting for the next big catalyst that could spur breakouts.
Bitcoin is still stuck inside its symmetrical triangle on the 4-hour time frame and is currently hovering at support. Price is still deciding whether to make a bounce or a break while stochastic hovers at middle ground.
The 100 SMA has crossed below the longer-term 200 SMA to indicate that the path of least resistance is to the downside. In other words, support is more likely to break than to hold, possibly setting off a slide that’s around the same height as the formation.
Ethereum has formed lower highs and lower lows to create a falling wedge pattern on its 4-hour time frame. Price is approaching the end of the formation, so a breakout might be due soon.
The 100 SMA is below the longer-term 200 SMA, which means that sellers have the upper hand. The faster-moving MA is also close to the top of the wedge, which could add to its strength as resistance.
Litecoin is also in consolidation as price is chillin’ like a villain inside a descending triangle. Price seems to be on its way to test support, which might keep losses in check as stochastic pulls up from the overbought zone.
The 100 SMA is below the 200 SMA, though, which suggests that support is more likely to break than to hold. If that happens, litecoin might slide by the same height as the chart pattern, which spans $71.70 to around $78.30.
XRP is – you guessed it – also stuck in consolidation! Price has been hanging out inside its symmetrical triangle pattern on the 1-hour time frame and is currently testing support.
Stochastic seems to be turning lower after reaching the overbought region, indicating that sellers could return from here and push for a break lower. At the same time, XRP is moving below both moving averages, which might hold as dynamic resistance levels.
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!