So far, so good for bitcoin and its peers! Can these altcoins extend their rallies or will nearby long-term resistance levels hold?
Check out this ranking of bitcoin and its buddies for the past seven days:
Bitcoin gained traction on its upside breakout from last week but is now hitting another ceiling at the top of its long-term descending channel. If this keeps holding, price could slide back to support at the Fibonacci extension levels.
The 100 SMA is below the 200 SMA to signal that resistance is more likely to hold than to break, but bitcoin has climbed above the dynamic inflection point to reflect bullish pressure. Still, stochastic is already in the overbought zone to indicate that buyers are feeling exhausted.
In that case, price could dip back to the 38.2% extension that lines up with the mid-channel area of interest or all the way down to the 61.8% level that coincides with the swing low around $6,400.
Ethereum is also hovering at the very top of its descending channel visible on the daily time frame while stochastic reflects overbought conditions. Turning lower could confirm that sellers are returning and might take price back to the nearby support zones.
The closest one is at the 38.2% Fib around $138.50, followed by the 50% extension at $128.90. Stronger bearish momentum could take it down to the 61.8% Fib that lines up with the swing low around $119 or the full extension at $87.94.
Litecoin was able to bust through the top of its long-term descending channel to confirm that a reversal from the downtrend is underway. Price also climbed above the 100 SMA dynamic inflection point and might be aiming for the 200 SMA dynamic resistance next.
However, stochastic is already in the overbought territory and turning lower could spur a pullback to the broken channel top.
XRP is hanging around an area of interest or former support level visible on its daily time frame. This lines up with the 50% Fibonacci retracement level and the 100 SMA dynamic resistance.
Stochastic has room to climb, so a larger correction might be underway. If so, XRP could retreat to the 61.8% Fib that’s closer to the 200 SMA dynamic resistance. Among its peers, XRP is the only one that has yet to see overbought conditions.
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!