The crypto gang is enjoying its stay in the green these days, and the latest rallies seem to suggest that they could go for more gains. Take a look!
Check out this ranking of bitcoin and its buddies for the past seven days:
Bitcoin has been on a tear these days but could be approaching its first major resistance at the 38.2% Fib extension on its latest bounce.
The 100 SMA is still below the 200 SMA to indicate that the path of least resistance is to the downside or that resistance is more likely to hold than to break. Stochastic is also reflecting overbought conditions or exhaustion among buyers.
But if bulls continue to charge, bitcoin could rally to the 50% extension around $11,750 or the 61.8% level near $13,000. Stronger bullish momentum could take it all the way up to the full extension at $17,000.
Ethereum could be in for a huge reversal from its downtrend as a double bottom pattern has formed on its daily time frame. Price has yet to test the neckline, but a break above this resistance could confirm that a rally of the same height as the pattern is due.
Stochastic is already in the overbought zone to suggest that buyers could use a break while the 100 SMA is below the 200 SMA to show that bearish pressure is still present. RSI is also showing that ethereum is most overbought versus its crypto peers:
Litecoin has formed higher lows and higher highs but is consolidating inside a rising wedge formation on its 1-hour chart. Price is currently testing resistance, still deciding whether to make a bounce or a break.
Stochastic is suggesting that resistance might hold as the oscillator shows overbought conditions.
However, the 100 SMA is above the 200 SMA, hinting that resistance is more likely to break than to hold, possibly resulting in a climb of the same height as the wedge.
XRP has been on a steady climb but could be poised to slow down as it approaches the key .3000 barrier. After all, this has held as support then resistance, so traders might be keen to book profits at that area.
The 100 SMA is below the 200 SMA, but price has climbed past both moving averages so these could hold as dynamic support levels on dips. Stochastic is already reflecting overbought conditions, though.
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!
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