Bitcoin and its buddies spent another week in the red, with XRP chalking up the largest decline. Are more losses in the cards?
Check out this ranking of bitcoin and its buddies for the past seven days:
Bitcoin has formed lower highs and lower lows to trade inside a descending channel on its 1-hour time frame. Price is currently testing support and could be due for a pullback to the top.
Stochastic is supporting this view as the oscillator is turning higher from the oversold region to signal a return in bullish pressure. In that case, bitcoin could recover to the channel resistance around $9,800 or at least until the mid-channel area of interest around $9,500.
However, the 100 SMA is below the 200 SMA to suggest that support is more likely to break than to hold. If that happens, a steeper selloff might follow!
Ethereum made lower highs and found support around $246, creating a descending triangle pattern on its 1-hour chart. Price is now down to support, and bulls might defend this floor until a bounce back to the triangle top takes place.
Buying momentum could return since stochastic is already pulling up from the oversold region. However, the moving averages made a bearish crossover to hint that a break below support might take place. If so, a selloff of the same height as the triangle could ensue.
Litecoin has been pacing back and forth between support at $67.75 and resistance at $71.75. Price is closing in on the bottom of the range, which might once again hold as support.Stochastic is starting to move north, so price might follow suit as buyers return while sellers are taking a break. The 100 SMA is above the 200 SMA for now, but the gap between the indicators has narrowed enough to signal an incoming bearish crossover.
In that case, litecoin bears could still have a shot at breaching the range support and pushing for a drop that’s the same height as the rectangle pattern.
XRP recently fell through the neckline of its head and shoulders pattern visible on the 4-hour time frame, indicating that a downtrend of the same height of the formation will follow.
The chart pattern spans .2800 to around .3500, so a drop of .0700 might come next. The 100 SMA is above the 200 SMA for now, but a bearish crossover seems to be looming to indicate that sellers are taking the upper hand.
Be mindful of quick pullbacks, though! Stochastic is indicating oversold conditions after all, and the oscillator could turn higher soon to show that buyers are back in the game.
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!