After making strong rallies in the past week, bitcoin and its peers look prime for retracements these days.
So far ETH is leading the pack, followed by litecoin, while XRP is trailing behind but still safely in the green.
Will more buyers hop in soon?
Check out this ranking of bitcoin and its buddies for the past seven days:
Bitcoin has formed higher lows and higher highs to trade inside a rising channel on its short-term chart. Price is bouncing off the resistance and could be due for a dip back to nearby support levels.A shallow pullback could find buyers at the mid-channel area of interest that lines up with the 100 SMA. This faster-moving MA is above the 200 SMA to confirm that the climb is more likely to pick up than to reverse.
Stochastic still has room to move lower before reflecting exhaustion among sellers, so bitcoin might dip further before bouncing. A break below the channel support around $6,500, however, could hint that a reversal is due.
Ethereum recently busted through the top of an ascending triangle visible on its 4-hour time frame then retreated upon reaching the $176 level. Stochastic is just turning lower from the overbought region to suggest that a correction is taking place.Using the handy-dandy Fib tool shows where more buyers might be waiting. The 61.8% Fib lines up neatly with the broken triangle resistance around $147, which could hold as support moving forward.
Just be careful, though! The 100 SMA is still below the 200 SMA for now to suggest that bearish momentum is present.
Litecoin is trading above a rising trend line connecting the lows since mid-March. Price looks ready for another test of this support level, which happens to coincide with the 61.8% Fibonacci retracement level and the 100 SMA dynamic inflection point.
However, the 50% Fib level already seems to be keeping losses in check as stochastic is starting to pull up from the oversold region. If any of the nearby support levels hold, litecoin could soon find itself climbing back to the swing high or higher.
XRP is already in the middle of a pullback inside its ascending trend channel seen on the 4-hour time frame. Price is testing the mid-channel area of interest that lines up with the 50% Fib, which appears to be holding as a floor.A larger correction seems possible since stochastic is just starting to make its way south from the overbought zone. In that case, XRP could dip to the very bottom of the channel that’s closer to the 61.8% Fib and a former resistance level.
The 100 SMA is below the 200 SMA for now, but the gap has narrowed enough to signal that a bullish crossover might follow. In that case, more buyers could take over and push for a continuation of the uptrend.
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!