Bitcoin and its buddies seem to be struggling to recover, and bearish pullbacks may be in the cards. Read on to see what I mean.
Check out this ranking of bitcoin and its buddies for the past seven days:
Bitcoin recently fell through the floor at $9,400 and dipped to a low of $8,455 before pausing from its drop. Price could be in for a correction from its slide and the Fib tool shows where more sellers might be waiting.The 38.2% level is near the $9,000 major psychological resistance while the 61.8% Fib coincides with the former support. This could be the line in the sand for a pullback, as a break higher could signal that bulls have taken over.
Stochastic is moving up from the oversold region after all, but the 100 SMA is still below the 200 SMA to show that bearish momentum is present.
Ethereum broke out of its descending triangle pattern visible on the short-term charts and appears to be making a retest of the broken resistance. If this keeps holding as support, price could recover to the upside targets marked by the Fib extension tool.
The 100 SMA is below the 200 SMA for now, so sellers could stay in control. However, the gap between the indicators is narrowing to reflect weaker selling pressure and a potential bullish crossover. Stochastic is also turning up, so price could follow suit.
Litecoin has formed lower highs that can be connected by a descending trend line since the middle of last month. Price might be due for a bounce back to this resistance that happens to line up with the 61.8% Fibonacci retracement.Buyers could return from here as stochastic pulls higher, but the 100 SMA is below the 200 SMA to signal that the selloff is more likely to resume than to reverse.
A shallow pullback could already find a ceiling at the 38.2% Fib around $65.50 or the 50% level at $68.30.
XRP is also in the middle of a break-and-retest situation as it pulled back to the broken descending triangle top. If buyers return from here, price could bounce back to the Fib extension levels next.
The 61.8% extension lines up with the swing high and could be a prime take-profit point. Stochastic is just getting started on its climb, so stronger bullish momentum could take it all the way up to the full extension at .2477.
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!