Bearish vibes are still very much in play for bitcoin and its peers lately, although some seem to be approaching long-term support areas for a possible bounce.
Check out this ranking of bitcoin and its buddies for the past seven days:
Yikes! Altcoins sank deeper in the red over the past week, with bitcoin down more than 12% so far and LTC falling far behind.
Bitcoin bears have been painting the town red these days, and more declines could be in order now that price has broken below the daily head and shoulders neckline.
The chart pattern spans nearly $3,000 in height so the resulting slide could be of at least the same size. The 100 SMA just crossed below the slower-moving 200 SMA to confirm that bearish momentum is gaining traction, but stochastic is pulling up from the oversold region to signal that a quick pullback might happen first.
Ethereum is down to the bottom of its descending channel on the daily time frame and might be due for another bounce to the top. Stochastic is already indicating oversold conditions or exhaustion among sellers and is turning higher to signal that buyers might take over.
However, the 100 SMA is below the 200 SMA on the daily time frame to suggest that support is more likely to break than to hold.
Litecoin is also in selloff mode and bearish pressure seems to be picking up as price is breaching its mid-channel area of interest. The 100 SMA is safely below the 200 SMA on this one, and the gap between the indicators is widening to reflect strengthening downside momentum.
Stochastic is hanging out at the oversold region, though, and turning higher could mean that buyers might still be able to take price up for another test of resistance.
Last but certainly not least is XRP, which already seems to have completed its retest of a broken support level and is resuming its breakdown. Price is already testing the 38.2% Fibonacci extension level but might still be aiming for the next downside targets.The 50% extension is located at 0.1675 then the 61.8% level is at 0.1327. Stronger selling pressure could take XRP to the full extension all the way down to 0.0200, but stochastic has already been indicating oversold conditions for quite some time.
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!