Are these altcoins bottoming out or hinting that further declines are in the works? Time to look at the charts and get my dose of MarketMilk™!
ICYMI, I’m trying out this neat technical analysis tool that simplifies the process of analyzing the forex and crypto markets for smarter, more efficient trading decisions.
Check out this ranking of bitcoin and its buddies for the week:
Oooh, XRP is way ahead of the pack while bitcoin is lagging far behind! Let’s see how the charts are looking:
Bitcoin still seems to be deciding whether to make a bounce or a break from the top of its short-term descending triangle. Technical indicators are giving mixed signals, too!
The 100 SMA is below the slower-moving 200 SMA to suggest that resistance is more likely to hold than to break, likely sending bitcoin back to the triangle bottom around $7,795. However, stochastic is turning up and heading north, so price might follow suit as buyers regain the upper hand.
Ethereum has been cruising inside an ascending trend channel on its 1-hour chart and seems to have found support at the mid-channel area of interest already. The Fib extension tool shows the next potential upside targets if bulls are indeed charging from here.
Stochastic is pointing up to confirm that buyers have the upper hand, but the moving averages are too close to call. Its short-term trend strength analysis on MarketMilk™ hints that it could edge towards bullish territory soon:
Litecoin is also trending higher and might be ready to bounce off nearby support levels marked by the Fibonacci retracement tool. The moving averages coincide with the mid-channel area of interest also, so buyers might be waiting to defend this level.
At the same time, bullish divergence can be seen as price made higher lows while stochastic had higher lows. This could mean a shallow retracement, followed by a move back up to the swing high or channel top soon.
XRP already breached its rising channel top to signal that a steeper climb is in the works.Technical indicators like the moving averages and stochastic support this idea, and the Fibonacci extension tool reveals the potential bullish targets.
Keep in mind, however, that XRP volatility tends to peter out towards the end of the week so bigger moves might not happen until next Tuesday.
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!