Are bears coming back for the altcoins this time? Here’s a quick look at what the charts and technical analysis tools have to say.
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 past seven days:
Bitcoin was unable to sustain its climb past the mid-channel area of interest on its ascending channel visible on the 1-hour time frame. Price is now setting its sights back on the channel support to gather more bullish energy.
Stochastic is already indicating oversold conditions, though, so bulls might be ready to charge again soon. A bullish crossover also seems to be brewing, and this could encourage even more buyers to join in.
Looking at the short-term trend analysis tool on MarketMilk™ reveals that bitcoin could be in for a bullish move.
Ethereum looks set to resume its selloff as it bounced off the top of the descending channel on the 1-hour chart, as well as the 200 SMA dynamic inflection point.
The 100 SMA is below this slower-moving MA to confirm that the path of least resistance is to the downside or that the downtrend is more likely to gain traction than to reverse. However, stochastic is edging closer to the oversold region to reflect exhaustion among sellers.
Litecoin recently broke below the bottom of its ascending channel support and appears to have completed its retest. Price could be setting its sights on the next downside targets from here.
Applying the Fibonacci extension tool shows that the 50% level might be the first target as it lines up with the swing low at $51.453. Stronger selling pressure could take litecoin down to the 61.8% extension at $50.397 or the full extension near $47.000, but stochastic is already indicating oversold conditions.
XRP formed higher lows and found resistance at the .3000 major psychological mark, creating an ascending triangle on its 1-hour time frame.Price is already bouncing off support while stochastic turns higher, suggesting that a move back to the triangle top may be in order.
The 100 SMA is above the 200 SMA also, indicating that support is more likely to hold than to break.
Still, a move below the bottom of the triangle at the .2900 area could spur a drop that’s the same height as the chart formation.
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!