It’s all about trend lines and Fib levels on this week’s set of crypto charts!
Take a look at these areas where bulls might be hanging out.
Bitcoin (BTC/USD) is still in pullback mode, fellas!
If you’re hoping to catch the uptrend on this one, better keep these support zones on your radar.Price is now testing the 38.2% level, which seems to be holding as a floor for now. A larger pullback could reach the 50% Fib that coincides with the 100 SMA or the 61.8% level that’s closer to the long-term rising trend line and area of interest.
Technical indicators are hinting that the rally could resume sooner or later, as the 100 SMA is above the 200 SMA while Stochastic is reflecting exhaustion among sellers.
Ethereum (ETH/USD) is also in correction mode to its rising trend line and Fib levels. You ain’t seein’ double!
Price seems to be bouncing off the 38.2% Fib already, suggesting that buyers are eager to return. After all, Stochastic is pulling up from the oversold region to confirm that bullish pressure is back in play.
This is near the former resistance around the $4,000 major psychological mark, as well as the 100 SMA dynamic support. Then this faster-moving SMA is above the 200 SMA to confirm that the path of least resistance is to the upside.
Litecoin (LTC/USD) is in the middle of a pullback, too!
Price is hanging out around the 50% Fib and area of interest around $200, but it might still be due for a larger dip to the long-term ascending trend line before the climb resumes.
Besides, a moving average crossover just took place, so bulls might just be warming up. These dynamic inflection points are also close to the trend line to add to its strength as a floor.
If the Fibs hold as support, litecoin could make its way back up to the swing high around $295 or higher. Don’t miss it!
XRP/USD is giving off bearish vibes, as it forms a double top pattern on its daily time frame.
Price has yet to test the neckline and break below it to confirm that a downtrend is in the works. If that happens, XRP could tumble by the same height as the reversal formation.
However, Stochastic is already indicating oversold conditions, which means that buyers might return while sellers are taking a break. To top it off, the 100 SMA is still above the 200 SMA to suggest that the path of least resistance is to the upside.
XRP already dropped below the 100 SMA dynamic support but might still be able to find buyers at the 200 SMA dynamic inflection point.
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If this is your first time checking out crypto charts, keep in mind that there is a considerable amount of risk in trading cryptocurrencies due to their inherent volatility and sensitivity to headlines. Be careful out there!