Bitcoin and its buddies are trying to keep their heads above water for now. Look at the charts to see which ones might sink or float.
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:
Just as in the previous week, XRP is still in the lead while the other altcoins are in the red.
Bitcoin is back in correction mode as it retreated from the top of the newly-forming ascending channel on its 1-hour time frame. Price is down to the 61.8% Fibonacci retracement level, still deciding whether to bounce or make a deeper pullback to the channel bottom.
The 100 SMA crossed below the slower-moving 200 SMA to suggest that bearish pressure is in play while stochastic has some ground to cover before indicating oversold conditions. With that, a test of the channel support closer to $8,050 might be in order.
Ethereum could be in for a reversal from its slide as it attempts to form a double bottom pattern on the 4-hour time frame. It has a lot of ground to cover before testing the neckline around $225, but a break above this could set off a climb that’s the same height as the reversal formation.
The moving averages are oscillating for now, though, and stochastic is pointing down to show that sellers have the upper hand. In that case, another dip to the lows around $165 might follow, especially if these moving averages keep holding as dynamic resistance.
Looking at the trend strength analysis on MarketMilk™ reveals that ethereum is in “bullish but weakening” territory:
Litecoin is testing make-or-break levels at the very bottom of its ascending channel on the 1-hour time frame. Long spikes have formed to signal that buyers are defending the $55 level well, but moving averages suggest that a breakdown might follow.
Stochastic is heading north, so price might follow suit while buyers have some energy left. This could take litecoin up to the top of the channel at $60 or at least until the mid-channel area of interest.
XRP looks ready to resume its climb as it bounced off the rising trend line and area of interest visible on its short-term time frames. At the same time, stochastic is pulling up without reaching the oversold region, hinting that bulls are eager to charge.
The Fibonacci extension tool marks the next potential upside targets, with the 61.8% level coinciding with the swing high at .3000. Stronger bullish momentum could take it up to the full extension closer to .3100.
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!