It’s all about consolidation on the crypto charts these days! Can the earlier rallies resume or will we see reversals from here?
Altcoins had a mixed run in the past week, with BTC leading the pack at a 2.13% price gain.
Litecoin, on the other hand, was left eating dust as it found itself 2.27% in the red.
Check out this ranking of bitcoin and its buddies for the past seven days:
Altcoins Price Performance from MarketMilk
BTC/USD: 4-hour
Bitcoin
However, Stochastic is already turning south from the overbought zone, so BTC could follow suit if selling pressure picks up. The 100 SMA is still above the 200 SMA, though, so buyers might have some energy left.
ETH/USD: 4-hour
Ethereum
Similarly, a break below the triangle support could set off a drop that’s the same size as the triangle. Sellers might have the upper hand soon as Stochastic is closing in on the overbought region.
Also, the 100 SMA appears to be crossing below the 200 SMA to suggest that bearish momentum is about to kick in, but it might be a bit early to tell!
LTC/USD: 1-hour
Litecoin
A break below the $45 level could be followed by a downtrend that’s the same height as the chart formation, which spans around $5. A bounce, on the other hand, could lead to another test of nearby resistance levels, possibly around the moving averages.
The 100 SMA just crossed below the 200 SMA to confirm that bears are taking over, but Stochastic is pulling up from the oversold region to signal a return in bullish momentum. Talk about getting mixed signals!
XRP/USD: 1-hour
XRP
On the other hand, Stochastic suggests that a bullish breakout might be due since the oscillator is just starting to climb from the oversold region. This suggests that buyers are taking over while exhausted sellers take a break.
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!
Tuesday, October 27, 2020