Cryptocurrencies seem to have completed their retests after bullish breakouts, so trends might gain traction from here.
Check out this ranking of bitcoin and its buddies for the past seven days:
Bitcoin busted through its long-term descending trend line visible on the daily time frame, indicating that a reversal from the downtrend is due. Price has also completed its pullback to the broken resistance and is making its way up to the next upside targets.
The Fibonacci extension tool shows that price is already climbing past the 38.2% level and aiming for the 50% Fib at $9,376.95. Stronger bullish momentum could take bitcoin up to the 61.8% level at $9,643.64 or the full extension at $10,507.00.
The 100 SMA is below the 200 SMA for now, but the gap between the indicators is narrowing to reflect weaker bearish momentum. Stochastic is also pointing up to show that buyers have the upper hand.
Ethereum is also in the middle of a bounce after its retest of a broken long-term descending trend line, inching closer to the 38.2% Fibonacci extension at $179.44.
Stochastic is heading up but is near the overbought region, so buyers might not have much firepower left. Also, price is approaching the 200 SMA dynamic resistance, which is still above the 100 SMA to signal that the downtrend is more likely to resume than to reverse.
If ethereum bulls keep charging, price could make it to the 50% level at $186.76 or the 61.8% Fib at $194.07. The full extension is located at $217.76.
Litecoin might be in for a reversal from its decline as price forms an inverted head and shoulders pattern on the daily time frame. Price has yet to break past the neckline resistance around $62 to confirm that an uptrend is in order.
The 100 SMA is below the 200 SMA to suggest that resistance is more likely to hold than to break, but stochastic is turning higher to hint that buyers are putting up a fight. Also, the gap between the moving averages is narrowing to show that a bullish crossover might happen soon.
XRP is resuming its climb after retreating to the rising trend line connecting the lows on the 4-hour time frame since mid-December last year. Price is now testing the 50% Fibonacci extension level that lines up with a short-term area of interest.Stochastic is already indicating overbought conditions, which means that buyers are exhausted and could let sellers take over. In that case, another pullback to the trend line could be in the works.
Still, the 100 SMA is above the 200 SMA to suggest that the uptrend is likely to carry on.
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!