Bitcoin and its crypto buddies hit strong resistance levels in their latest rallies, possibly yielding more opportunities to catch pullbacks.
Altcoins were back in the green in the past week, led by ETH with a whopping 14.79% gain and followed by BCH’s 8.01% increase.
XRP is behind the pack but still looking at a decent 2.68% price gain.
Check out this ranking of bitcoin and its buddies for the past seven days:
Altcoins Price Performance from MarketMilk
BTC/USD: 4-hour
Bitcoin
A larger pullback could still last until the very bottom of the channel around $9,000 or the 61.8% Fib that coincides with the dynamic support at the moving averages.
The 100 SMA is still above the 200 SMA to signal that the uptrend could carry on, but the gap between the two is narrowing to reflect slowing bullish pressure.
Also, Stochastic is heading south so BTC could follow suit while sellers have the upper hand.
ETH/USD: 4-hour
Ethereum
With that, a larger correction could test the 61.8% Fib that coincides with a former resistance level that might hold as support.
The 100 SMA is safely above the 200 SMA for now, confirming that support levels are more likely to hold than to break. If so, ETH could recover to the swing high and beyond!
LTC/USD: 4-hour
Litecoin
However, Stochastic is showing the presence of downside momentum while exhausted buyers are taking a break.
Better wait for the oscillator to turn higher from the oversold region if you’re counting on bullish pressure to kick in!
XRP/USD: 4-hour
XRP
A larger pullback could dip until the 61.8% level or the channel support at 0.1950 as Stochastic still reflects bearish energy and has plenty of room to head lower before signaling exhaustion among sellers.
Just be careful when going long since the 100 SMA is already below the 200 SMA to show that the path of least resistance is to the downside. In other words, support might be more likely to break than to hold!
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!