Cryptocurrencies have been off to a good start this year, but can bulls keep up these rallies or will bears take over soon?
Check out this ranking of bitcoin and its buddies for the past seven days:
Bitcoin was previously consolidating inside a falling wedge pattern on its daily time frame before breaking above the resistance to signal that an uptrend might follow.
The 100 SMA dynamic inflection point seems to be holding as a ceiling, though, and this indicator is below the slower-moving 200 SMA to confirm that the selloff is likely to resume.
Stochastic has a bit of room to climb, so buyers could stay in control until overbought conditions are seen.
Ethereum is still in correction mode from its downtrend, and the Fibonacci retracement tool shows where sellers might be waiting. Price is closing in on the 38.2% level while stochastic hits the overbought zone, but a higher correction might be possible.
The 61.8% level could be the line in the sand for a bearish pullback as it lines up with a former support zone and the 100 SMA. This moving average is below the 200 SMA to indicate that the downtrend is more likely to resume than to reverse.
Litecoin is starting to trend higher as it formed higher highs and higher lows inside an ascending channel on its 1-hour time frame. However, the top of the channel is currently keeping gains in check, so a pullback might be needed to draw buyers in.
Using the handy-dandy Fib tool on the latest swing low and high shows that the 61.8% level is closest to the channel bottom. Meanwhile, the 38.2% Fib lines up with the 100 SMA and the 50% level coincides with the 200 SMA dynamic support.
XRP recently busted through its descending trend line on the 4-hour time frame to signal that a reversal from the slide is due. Price hit a roadblock at the 0.2255 mark and is retreating to the Fib retracement levels while stochastic points down.
The oscillator has plenty of room to head south, so price could be in for a retest of the broken trend line and area of interest near 0.2000 before heading back up. If this holds as support, XRP could recover to the swing high and beyond!
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!