Bitcoin and its buddies can’t quite seem to shake off the bearish vibes as risk aversion has also gripped cryptocurrencies lately. What’s up with that?
Check out this ranking of bitcoin and its buddies for the past seven days:
Bitcoin continues to cruise lower as a descending trend line can be drawn to connect the latest highs of price action. Price might be in for another test of this resistance that lines up with the Fib retracement levels.The 61.8% level is closest to the trend line at $8,650 and is also around a former support area that might hold as resistance. It’s also right smack in line with the 200 SMA dynamic inflection point, which is above the 100 SMA to indicate that the downtrend is likely to carry on.
Stochastic is still pointing south, so bitcoin price could follow suit while sellers have the upper hand. A shallow pullback could find a ceiling at the 50% Fib near the 100 SMA or the 38.2% level around $8,300.
Ethereum also looks prime for a pullback to an area of interest visible on its short-term time frames.
The former support area is spanned by the 50% to 61.8% Fib retracement levels from $222 to $230, and keeping gains in check could push price back to the swing low or lower.
The 100 SMA crossed below the 200 SMA to signal that the path of least resistance is to the downside or that the Fibs are more likely to hold than to break. Meanwhile, stochastic is also pointing lower to reflect the presence of bearish pressure.
Litecoin is also in correction mode as it paused from its latest slide to inch close to the Fib retracement levels.Bears are still very much in control, though, as stochastic looks ready to move south and the moving averages showed a bearish crossover.
If you’re looking to short, better wait for a retracement to the 50% to 61.8% levels spanned by the moving averages and the area of interest or former support around $56.
XRP is looking very much like its crypto peers as it is in the middle of a pullback to nearby resistance levels. Price is already closing in on the 38.2% Fib retracement level but might still be in for a retest of the broken support closer to the 50% Fib.
This coincides with the 100 SMA dynamic inflection point, which adds to its strength as resistance. This also happens to be below the 200 SMA, confirming that the ceiling is likely to hold and push XRP back to the swing low.
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!