So much for those short-term rallies! Bitcoin and its peers look ready to head south again, at least based on these charts.
The altcoin gang closed the previous week in the red, with BCH deep in negative territory at a 15.72% loss.
Will more sellers take over soon?
Check out this ranking of bitcoin and its buddies for the past seven days:
Bitcoin might be done with its climb as it formed a head and shoulders reversal pattern on its 1-hour chart and broke below the neckline.Price is also completing its pullback to the broken neckline, which might keep holding as resistance from here. If so, bitcoin could tumble by the same height as the chart formation.
The 100 SMA has crossed below the 200 SMA to confirm that the path of least resistance is to the downside or that bearish momentum is in play. Stochastic is also moving south, so price could follow suit while sellers have the upper hand.
Ethereum is already testing the area of interest we were looking at last week, and it seems that a bounce is happening.Applying the Fibonacci extension tool shows where price might be headed if the uptrend resumes. The 38.2% level is just close by at $167.48 then the 50% Fib is at $173. The 61.8% level lines up with the swing high and the full extension is at $196.37.
Stochastic is on the move up to confirm that buyers have the upper hand at this point, while the 100 SMA is above the 200 SMA to support the continuation of the uptrend.
Litecoin is starting a new trend as it formed lower highs and lower lows to move inside a descending channel on its short-term chart.Price is currently testing the top of the channel, and holding as resistance could send it to the downside targets marked by the Fib extension tool. In particular, the 50% level lines up with the mid-channel area of interest while the 61.8% Fib is closer to the swing low.
The full extension lines up with the bottom of the channel, where hardcore sellers might be looking to book profits. After all, the 100 SMA remains safely below the 200 SMA while stochastic has room to head lower.
XRP is in consolidation mode as it formed lower highs and found support at 0.1820, creating a descending triangle on its 1-hour chart.Price is hovering close to support and may be looking to break lower, especially since the 100 SMA is below the 200 SMA and has held as dynamic resistance. In that case, XRP could fall by the same height as the triangle formation.
Note that stochastic is still moving lower, which suggests that price could follow suit while bearish pressure is in play.
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!