If last week was all about retracements, then this week is all about Fibonacci extensions. Check out these potential targets!
Bitcoin finally broke out of its consolidation pattern as sellers won the tussle. Now the triangle chart pattern spans $9,400 to around $13,000 so the resulting selloff could be of the same size.
The 100 SMA is just about to cross below the slower-moving 200 SMA to confirm that bearish momentum has picked up, but stochastic is nearing oversold territory to reflect exhaustion among sellers. Turning back up could mean that a pullback to the broken triangle bottom may be in order.
Ethereum completed its retest of the broken ascending trend line on its daily time frame and is now setting its sights on the next downside targets. Stochastic is turning lower from the overbought zone to signal that sellers have the upper hand, and the oscillator has room to fall before indicating oversold conditions.
Even though the 100 SMA is above the 200 SMA for now, the gap between the moving averages has narrowed to hint at a looming bearish crossover. In that case, ethereum could head to the 50% extension at $125 or the 61.8% extension near $100.
Litecoin is forming a bearish channel on its 4-hour time frame and is approaching the channel bottom near the 61.8% extension of $52.784. Stronger selling pressure could take it to the full extension all the way down to $35.680.
However, the 100 SMA just crossed above the 200 SMA to indicate that the path of least resistance is to the upside or that support is more likely to hold than to break. Stochastic is also approaching the oversold region to signal bearish exhaustion.
XRP bounced off the area of interest or support-turned-resistance as expected, making its way down to the 38.2% Fibonacci extension level as a result.
The 100 SMA is below the 200 SMA to confirm that bearish pressure is present while stochastic is also heading south, so price could follow suit. The oscillator has a bit of ground to cover before reflecting oversold conditions, so XRP might still head down to the 50% extension at 0.1920 or the 61.8% level at 0.1600.
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!