Will these resistance levels hold or break for bitcoin and its peers? Check out the next potential targets marked on these charts!
Cryptocurrencies?were back in the green for the previous week, led by Bitcoin Cash which is up by 5.74%.
Check out this ranking of bitcoin and its buddies for the past seven days:
Bitcoin made it all the way to the top of the falling trend channel we had our eyes on last week, and might be setting its sights back on support.If the resistance holds, price could retreat to the 38.2% to 50% Fib extension levels that span the mid-channel area of interest. Stronger selling pressure could take it down to the swing low near the 61.8% level or the full extension closer to the very bottom of the descending channel.
Stochastic is already turning lower from the overbought zone to signal a return in selling pressure while the 100 SMA remains safely below the 200 SMA.
Ethereum?also reached the top of the descending channel we were watching last week and is now deciding whether to make a bounce or a break.Technical indicators are suggesting that the resistance is more likely to hold than to break. For one, the 100 SMA is below the 200 SMA to suggest that the path of least resistance is to the downside.
Also, Stochastic is starting to head south from the overbought zone, indicating that sellers are taking over while buyers are exhausted.
The Fib extension tool shows the next potential downside targets, with the 50% level coinciding with the middle of the channel and the 61.8% level lining up with another short-term support zone.
Litecoin?is forming lower highs and finding support around $40.55, creating a descending triangle pattern visible on its 4-hour time frame.Price just recently bounced off the triangle bottom and might be aiming for the top around the $47.50 mark. However, Stochastic is already on the move down, so LTC could follow suit as bearish pressure kicks in.
In addition, the 100 SMA is below the 200 SMA to confirm that sellers have the upper hand. The 200 SMA is holding as dynamic resistance as well, possibly sending litecoin back to the triangle support or lower.
XRP?enjoyed a strong pop higher recently and seems to be in the middle of a pullback from this big rally.Applying the handy-dandy Fib retracement tool shows where more buyers might be waiting. The 61.8% level lines up with an area of interest, the moving averages, and a rising trend line connecting the lows since late June.
The 100 SMA is above the 200 SMA to signal that the uptrend is more likely to resume than to reverse while Stochastic looks eager to head north without even reaching the oversold region. With that, a shallow pullback could be enough to draw bulls in.
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!