Are crypto bulls returning yet? I’m seeing signs of short-term bullish trends forming, but it may be too early to tell. See for yourself!
Bitcoin bulls were off to a strong start this month, but price is in the middle of a correction after its trend line breakout. Applying the handy-dandy Fib tool shows that the 61.8% Fibonacci retracement level lines up with an area of interest.
If this is enough to keep losses in check, bitcoin could recover to the swing high near $11,000 and beyond. Stochastic is moving south but closing in on the oversold region to suggest that bearish pressure is winding down. However, the 100 SMA is still below the 200 SMA to signal that sellers might still have the upper hand.
Ethereum is starting a fresh trend as it formed higher lows and higher highs inside an ascending channel on its 1-hour chart. Price is even trading at the upper half of the channel to suggest that buyers are in control. Stochastic is also on the move up, so price might follow suit while bullish pressure is present.
At the same time, the 100 SMA is above the slower-moving 200 SMA to indicate that bullish momentum is still in play. Both of these indicators are also holding as dynamic support levels at the mid-channel area of interest.
Nope, you ain’t seeing double! Litecoin is looking pretty much the same as ethereum’s 1-hour chart as price trades in the upper half of its newly-formed ascending channel.
The 100 SMA is also above the 200 SMA to indicate that the path of least resistance is to the upside. In other words, the uptrend is more likely to gain traction from here. Heck, price might even bust through the channel top and start a steeper climb!
XRP is also trending higher inside a rising channel on its short-term chart, but price seems in for a deeper pullback as it fell below the mid-channel area of interest.
A move back to support around the .2500 mark may be in the works, especially since price is below both moving averages as well. Then again, stochastic has already started to pull up from the oversold region to suggest that buyers are taking over.
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!