Bitcoin and its peers are holding on to their gains lately but might need some quick retracements to draw more buyers in. Take a look!
Check out this ranking of bitcoin and its buddies for the past seven days:
Bitcoin has formed higher lows connected by a rising trend line on its 4-hour time frame and looks due for a correction to this support area. Stochastic is still heading down to show that there’s some selling pressure left.
The 100 SMA is above the 200 SMA to confirm that the path of least resistance is to the upside or that the climb is more likely to resume than to reverse. The Fibonacci retracement tool shows nearby support areas where buyers might be waiting, with the 50% level lining up with the trend line to add to its strength as support.
Ethereum is also in the middle of a correction on its short-term uptrend and seems to be bouncing off the trend line support already. If this is enough to keep losses at bay, price could head up to the Fib extension levels next.
The 61.8% level is in line with the swing high around $195, which might be the first take-profit point for bulls. Stronger bullish pressure could take it up to the full extension at $200, but stochastic is already reflecting exhaustion among buyers.
Litecoin is pulling back from its latest climb while stochastic is heading south to signal a return in selling pressure. The oscillator is already dipping into the oversold region, though, and turning higher could show that buyers are about to take over.
The 100 SMA is above the 200 SMA after all, so the climb is more likely to resume than to reverse. The 100 SMA also lines up with a rising trend line, an area of interest, and the 50% Fibonacci retracement level.
XRP is trending higher inside a rising channel on its 4-hour time frame and is testing the resistance. If this keeps gains in check, price could retreat to the channel support at .2505 or at least until the mid-channel area of interest.
A break past the channel top, on the other hand, could lead to a steeper climb for XRP. Stochastic is pointing up to show that there’s some bullish pressure left while the 100 SMA is above the 200 SMA to confirm that resistance is more likely to break than to hold.
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!