Cryptocurrencies are still lookin’ mighty fine these days, possibly drawing more bullish energy on these short-term pullbacks. Check out these charts yo!
Check out this ranking of bitcoin and its buddies for the past seven days:
Bitcoin has been trending higher on its 1-hour time frame since breaking above its longer-term descending channel from the previous week. Price is now testing the bottom of its short-term rising channel, and a bounce could take it back to the top around $10,000.
The 100 SMA is above the 200 SMA for now, but the gap between the indicators is narrowing to reflect weaker bullish momentum. A bearish crossover could spur a breakdown, especially since stochastic is approaching overbought levels.
Ethereum also made an upside breakout from a long-term falling channel and is now cruising above a rising trend line visible on its 1-hour chart. Price is in the middle of a correction and could be due to bounce off these nearby support levels.
The 38.2% Fib is holding so far, but a larger pullback could take ethereum down to the 61.8% level that lines up with the channel support and 100 SMA dynamic inflection point. This moving average is above the 200 SMA to confirm that the climb is more likely to resume than to reverse.
Stochastic is still pointing up to show that buyers have the upper hand, but reaching the overbought zone and turning lower could bring more sellers to the mix.
Litecoin might be in for a reversal from its short-term uptrend as price is forming a head and shoulders pattern on its 1-hour time frame. A break below the neckline around $55.850 could set off a drop that’s the same height as the formation.
The 100 SMA looks ready to cross below the 200 SMA to confirm that bearish momentum is about to pick up. Stochastic has a bit of room to climb but also seems to be topping out and ready to move south, so price might follow suit.
XRP has formed higher lows and higher highs to trade inside an ascending channel on its 1-hour time frame. Price just bounced off an area of interest and could be setting its sights back on the resistance around 0.2650.
The 100 SMA is above the 200 SMA to confirm that the path of least resistance is to the upside while stochastic continues to make its way up. Then again, the oscillator is closing in on overbought conditions while the gap between the moving averages appears to be narrowing to suggest that sellers are just around the corner.
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!