I’m seeing a mix of consolidation and breakouts on the altcoin charts this week. Here’s what’s up with bitcoin and its peers.
Check out this ranking of bitcoin and its buddies for the past seven days:
All green, baby! Litecoin is way ahead of the pack with a gain of 8.25% while XRP is lagging behind but still in positive territory.
Bitcoin is still stuck in consolidation as it formed lower highs and higher lows inside a symmetrical triangle on its 1-hour chart. Price is hovering close to the top of the triangle and might be considering an upside break.
The 100 SMA is above the slower-moving 200 SMA to suggest that buyers have the upper hand, and the moving averages are holding as dynamic support at the moment. However, stochastic is on the move down to reflect the presence of selling pressure.
Ethereum already busted through the top of its triangle consolidation pattern to signal that bulls have won the round, likely taking price higher by the same height as the chart formation.
Another quick pullback may be in order, though, as stochastic is just turning lower from the overbought zone. The moving averages indicate that ethereum is approaching bullish ground:
Litecoin looks primed for a reversal from its downtrend as it closed above the descending trend line visible on its 4-hour time frame. The 100 SMA is just crossing above the 200 SMA to hint that buyers are about to take the upper hand. However, stochastic is already indicating exhaustion among bulls, so a retest of the broken trend line might be in order.
XRP is taking its own sweet time hovering below the neckline of the double bottom reversal formation its 4-hour time frame. A break higher could finally confirm that a reversal from the selloff is due, and this could last by around the same size as the chart pattern.The 100 SMA is already above the 200 SMA to indicate that the odds are in the bulls’ favor while stochastic has room to climb before reflecting overbought conditions. If resistance holds, though, another dip to the bottoms might be in the works.
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!