Slow and steady does it! Bitcoin and its peers are gradually getting back on their feet as sentiment appears to have improved in the cryptocurrency industry.
Bitcoin is on a steady climb inside an ascending trend channel visible on its 1-hour time frame. Price is currently testing support, which lines up with the 100 SMA dynamic inflection point, and might be due for a bounce back to the top.
This moving average is above the longer-term 200 SMA, indicating that the path of least resistance is to the upside or that the uptrend is more likely to resume than to reverse.
Stochastic is still heading south, though, and has some room to go before hitting oversold levels. A move below the $11,000 support zone could lead to a test of the next potential floor at the 200 SMA or $10,000 mark.
Ethereum finally made its way to the area of interest we were eyeing last week! The top of the ascending channel seems to be holding so far, probably forcing it to turn back down to the swing low or channel support.
The 100 SMA is safely below the longer-term 200 SMA to signal that bearish pressure is in play while stochastic is on the move down. The 200 SMA, which lined up with the channel resistance, Fib levels, and former support, is also keeping gains in check.
Note, however, that the oscillator is closing in on oversold conditions, so there’s a chance that bulls could charge again soon. Better wait for a candle to close past the $1,000 major psychological handle if you’re planning on going long.
Litecoin surged past its symmetrical triangle resistance last week and has since staged a strong rally to the $250 area. Another consolidation pattern formed, and price seems to have broken to the upside as well.
However, bulls still seem hesitant to extend the climb as litecoin is now pulling back to what appears to be the mid-channel area of interest on a new channel forming.
This area coincides with the 100 SMA dynamic support, which is above the longer-term 200 SMA to indicate that the uptrend could carry on. A larger correction could find buyers around the bottom of the channel closer to the $200 mark.
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!