Altcoins are back in consolidation mode these days as traders appear to be waiting for stronger market catalysts. Will we see breakouts soon?
Check out this ranking of bitcoin and its buddies for the past seven days:
Bitcoin is hitting a strong ceiling at the long-term area of interest or former support around the $7,000 levels. Price might be ready to resume the slide back to the previous lows or the next downside targets marked by the Fibonacci extension tool.The 100 SMA is below the 200 SMA for now, but the gap between the indicators has narrowed enough to suggest that a crossover might happen. If so, buyers could take over and push for another test of nearby resistance levels.
Then again stochastic is pointing lower to reflect a pickup in selling pressure, which might be enough to take bitcoin down to the support at the 38.2% extension around $4,450.
Ethereum has formed lower highs and higher lows to consolidate inside a symmetrical triangle on its 1-hour chart. So much for that short-term uptrend we were looking at last week!
Price just bounced off the top of the triangle and seems to be setting its sights back at support around $130. Technical indicators like the moving averages and stochastic are suggesting that the drop could carry on.
Litecoin is also stuck inside a triangle consolidation pattern on its 1-hour chart, but this altcoin might be in for a breakout soon.A break below the triangle support could set off a slide that’s the same height as the chart formation.
Note that the 100 SMA is below the 200 SMA to hint that support is more likely to break than to hold. Also, stochastic is moving south so price could follow suit while sellers have the upper hand.
XRP is in the same boat as most of its crypto peers as it consolidates inside a symmetrical triangle pattern. Price is bouncing off resistance and could carry on with its drop to support around $0.1640.Stochastic is pointing down to confirm that sellers have enough energy to push for more declines, but the oscillator is closing in on the oversold region to suggest that exhaustion could happen soon.
The 100 SMA is also above the 200 SMA to indicate that the path of least resistance is to the upside or that support is more likely to hold than to break. In that case, another bounce to the top of the triangle might follow.
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!