Bitcoin seems to be waiting for a breakout while the rest of its crypto peers have been on a tear. Will nearby resistance levels hold?
Bitcoin still can’t seem to decide where to go, as price remains stuck inside its symmetrical triangle consolidation pattern. A break past the resistance around $10,300 could take it up by the same height as the chart formation.
The 100 SMA just crossed above the longer-term 200 SMA to indicate that bulls are ready to take over from here. At the same time, stochastic is pulling up from the oversold region to show that buying pressure is getting stronger.
Still, if the triangle top holds as resistance, bitcoin could fall back to support around $9,800 or perhaps break lower.
Ethereum recently fell through its ascending trend line on the daily time frame to signal that a long-term reversal is due. Price seems to be pulling up for a retest of this broken support or possibly a larger retracement to the area of interest near the 38.2% Fib.
Stochastic is already in the overbought zone to show that buyers are starting to feel exhausted and that sellers might take over soon. The gap between the moving averages is also narrowing to reflect weakening bullish momentum.
Litecoin is also pulling up to an area of interest visible on its long-term charts. Price is approaching the broken support that coincides with the 38.2% Fibonacci retracement level, but a larger correction might still be possible.
The 100 SMA is above the slower-moving 200 SMA for now, so the path of least resistance is to the upside. Stochastic also has some room to climb before indicating overbought conditions, so a bit of bullish momentum might still be in play.
XRP is also in correction mode and is already hanging out at the area of interest visible on its daily time frame. Price might be setting its sights on the 38.2% Fib that lines up with the dynamic resistance at the moving averages.
The 100 SMA has just crossed below the 200 SMA to confirm that resistance is more likely to hold than to break. Stochastic has a bit of room to move up before reaching the overbought region, so bulls might still have some energy left. Once the oscillator turns south, XRP might follow suit and dip back to the swing low.
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!