I’m not seeing a lot of action in the crypto charts these days, but there might still be some short-term moves worth catching. Here’s what I’m talking about!
Check out this ranking of bitcoin and its buddies for the past seven days:
Bitcoin has given in to bearish pressure as it formed lower highs and lower lows to create a descending channel on its 1-hour time frame. Price is bouncing off support and could be due for a correction to the top.
The Fib retracement tool shows that the 61.8% level is closest to the channel resistance and an area of interest around the key $9,000 handle. This also lines up with the 200 SMA dynamic inflection point, which is above the 100 SMA to signal that the downtrend is likely to resume.
Ethereum is starting to trend higher after its previous upside triangle break, currently testing the bottom of a rising channel forming on its 1-hour chart.
The 100 SMA is below the 200 SMA, though, and stochastic is inching close to the overbought zone to signal that sellers could still push for a break below the channel bottom around $183.
This moving average tool reveals that ETH/USD could be crossing over to bullish territory soon while LTC is still in the bear zone.
Litecoin just busted through its longer-term descending trend line, though, suggesting that a reversal from the earlier selloff might be in the works. Price has yet to make a retest of the broken resistance, which might hold as support.
This lines up with the 38.2% to 50% Fibonacci retracement levels, which span a former horizontal resistance as well. The 100 SMA crossed above the 200 SMA already while stochastic looks ready to turn up without hitting the oversold region, suggesting that bulls are eager to charge.
So much for that double bottom reversal pattern from last week! XRP might not be due for a rally anytime soon as price has been on the decline before even testing the resistance around .3275.
This overbought/oversold tool, however, is indicating that XRP might still be the most bullish of the bunch while litecoin and Bitcoin Cash are overbought.
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!