We’ve got short-term trends forming on the crypto charts these days, and I’m keeping tabs on these potential pullback zones.
Check out this ranking of bitcoin and its buddies for the past seven days:
Bitcoin?is cruising higher inside a rising channel that’s been connecting the highs and lows since the start of the month.Price is hanging out around the top of the channel, probably attempting to break above it and start a steeper climb. If resistance holds, however, a pullback to the Fibonacci retracement levels might follow.
More buyers could be waiting to join the rally around the 61.8% level, which lines up with the channel bottom and an area of interest. This is also close to the 100 SMA dynamic support, which is above the 200 SMA to confirm that the uptrend is likely to carry on.
Ethereum?is also in retracement mode but already seems to be bouncing off the support-turned-resistance level seen on the 4-hour time frame.Stochastic is already on the move down to confirm that bears have the upper hand. If so, they could drag price all the way down to the swing low at $310 or lower.
A larger pullback could last until the 50% level near the moving averages or the 61.8% Fib that might be the line in the sand for a bearish correction.
Litecoin?is pulling up from its slide as it found support at the bottom of a freshly-forming descending channel on its short-term chart.
The 100 SMA is above the 200 SMA to signal that the path of least resistance is to the upside or that there’s a chance that the top of the channel could still break.
Stochastic is also heading north, so price could keep following suit until overbought conditions are met. Just watch out for reversal candlesticks forming around the 61.8% Fib to gauge if the downtrend is likely to resume or reverse.
Nope, you ain’t seeing double!
XRP is also moving inside a new descending channel on its 1-hour chart and is bouncing off support. A pullback to the resistance could follow, and sellers might be waiting around the 61.8% Fib or .2450.Technical indicators are suggesting that buyers have control, though, and might be strong enough to go for more gains.
The 100 SMA is above the 200 SMA while Stochastic has plenty of room to climb before signaling that the uptrend is overdone. Better wait and see how price reacts to the channel top before taking any trades on this one!
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!