When will crypto bulls show up? These cryptocurrencies are closing in on support levels, so let’s see if they’ll hold this time!
Bitcoin seems to be pulling up after its earlier dive below the bottom of the symmetrical triangle on its 4-hour time frame. Applying the Fibonacci retracement tool on the latest swing high and low shows that the 61.8% level is closest to the broken support around $9,500.
However, stochastic is already turning from the overbought zone to indicate that a shallow pullback may be in order. At the same time, the gap between the 100 SMA and 200 SMA is widening to reflect increased bearish pressure.
Ethereum has formed higher lows and higher highs inside an ascending channel on its 1-hour time frame, and might be due for a pullback to support.
Price is currently testing the 50% Fibonacci retracement level but could still dip lower to the 61.8% Fib closer to the channel support. Stochastic looks ready to turn higher without even hitting the oversold region, suggesting that buyers are eager to return.
Litecoin is trending down, with lower highs and lower lows inside a descending channel on its 4-hour chart. Price is down to support and might be in for a correction to the channel top.
Using the handy-dandy Fib tool on the latest swing high and low shows that the 61.8% level is closest to the channel top but that the 50% level lines up better with an area of interest. Stochastic is already pointing south, so price might follow suit, while the moving averages made a bearish crossover as well.
XRP is also inside a short-term channel as it formed higher lows and higher highs on its 1-hour time frame. Price is in the middle of a correction to an area of interest or former resistance, which also happens to be close to the channel support.
The moving averages are holding as dynamic support, and it looks like a bullish crossover is brewing. Stochastic is still hovering around the oversold region, so there may be some bearish pressure left in play.
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!