Bitcoin and its buddies seem to be feelin’ the love these days as a combination of risk-taking and easing concerns about regulation are propping ’em higher.
Bitcoin looks tired from its dive as price is forming what appears to be a sketchy inverse head and shoulders pattern. A break past the neckline around the $9,000 level needs to happen, though, before bitcoin is able to pull up.
The 100 SMA has already crossed above the longer-term 200 SMA to signal that bulls are ready to charge, and the short-term moving average is holding as dynamic support.
Stochastic is on its way up but seems to be changing its mind, so a return in bearish pressure is still possible. In that case, bitcoin could still dip to the nearby support at $8,000.
Ethereum is still in correction mode after moving mostly sideways since the previous update. However, bullish pressure appears to be building up the 100 SMA has just made an upward crossover from the 200 SMA.
Stochastic is hovering near overbought levels, though, so sellers might still have the upper hand. This suggests that nearby resistance levels at the 61.8% Fib and the top of the channel could hold like a boss. Those are near the $1,000 major psychological mark, might I add!
Litecoin was also in consolidation mode for the past few days, but it looks like buyers are back at it again! Price is starting to break above its triangle resistance to signal that a climb is underway.
At the same time, the 100 SMA is widening its gap with the 200 SMA to indicate a pickup in bullish momentum. If bulls stay in the game, litecoin could rally by the same height as the triangle formation, which spans $109 to around $172.
But be careful as stochastic is already dipping into overbought territory to signal potential profit-taking.
A bit of fair warning, though. There is a considerable amount of risk in trading cryptocurrencies due to their inherent volatility and sensitivity to headlines. Be careful out there!