Volatility, baby! Bitcoin, ethereum, and litecoin have busted out to new highs and appear to be presenting pullback opportunities. Anyone joining in?
Bitcoin surged past the $10,000 barrier as traders seemed hungry for more gains (and turkey!) during the Thanksgiving holidays. Price has since retreated from the latest all-time highs as profits were cashed in, but bulls seem to be at it again.
BTC/USD just bounced off the ascending trend line support connecting the lows since the middle of this month. After all, this was close to the dynamic inflection points at the moving averages.
The 100 SMA is above the longer-term 200 SMA on the 1-hour chart, so the uptrend could resume from here. At the same time, stochastic is pulling higher, possibly allowing bitcoin to head up to the nearby Fib extension levels or even create another set of highs!
Ethereum bulls weren’t left behind in the volatility party last week as price jumped past the ascending channel resistance from the previous weeks to start a steeper climb.
Stochastic is still on the move down, though, which suggests that selling pressure is in play for now. This could keep ETH/USD in correction mode, probably heading for a deeper pullback to the 61.8% Fib closer to the rising trend line support and 100 SMA dynamic inflection point.
Litecoin is also pulling back from its strong upside channel break but seems to have already bounced off the Fibs. In that case, price could be ready to head back up to the swing high or beyond.
The 100 SMA is above the longer-term 200 SMA to signal that the path of least resistance is to the upside. However, stochastic is pointing down to suggest that a deeper correction may be in the works, possibly until the 50% Fib closer to the broken channel resistance.
If you’re taking any of these setups, make sure you practice proper risk management and stay vigilant since cryptocurrencies are prone to sudden bursts in volatility!