Altcoins are pausing from their trends these days, creating triangle patterns on their short-term charts while waiting for the next set of catalysts.
Cryptocurrencies slumped back in the red for the previous week, returning their gains earlier on.
Bitcoin Cash is leading the declines with a whopping 5.44% loss, followed by litecoin which is down nearly 3%.
Check out this ranking of bitcoin and its buddies for the past seven days:
Altcoins Price Performance from MarketMilk
BTC/USD: 4-hour
Bitcoin
The 100 SMA is below the 200 SMA to suggest that the path of least resistance is to the downside or that support is more likely to break than to hold. Meanwhile, Stochastic is turning higher to hint that buyers have the upper hand.
Either way, bitcoin could be in for a trend that’s a least the same height as the triangle pattern once it breaks out!
ETH/USD: 1-hour
Ethereum
Stochastic is turning lower from the overbought region, which means that sellers are taking over while exhausted buyers take a break. Also, the 100 SMA just crossed below the 200 SMA to confirm that bearish pressure is picking up.
Stronger selling momentum might even trigger a break below the triangle bottom and a decline that’s the same size as the chart pattern.
LTC/USD: 4-hour
Litecoin
The 100 SMA is still below the 200 SMA to indicate that there’s still a bit more selling pressure left, but a crossover seems to be looming. Stochastic has room to head lower before reflecting oversold conditions, but the oscillator also seems to be turning higher.
XRP/USD: 1-hour
XRP
Be careful when trying to catch a rally, though, as Stochastic is already indicating overbought conditions or exhaustion among buyers. Heading south could mean that sellers have regained the upper hand, so XRP might follow suit and attempt to break below support.
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!