Are crypto bears back in town? I’m seeing short-term downtrends forming on these charts lately. Take a look!
Cryptocurrencies slumped back in the red over the past week, retreating from their earlier strong rallies to record levels.
LTC is at the bottom of the altcoin pile with a 9.52% loss, followed by XRP which is down 7.30%.
Check out this ranking of bitcoin and its buddies for the past seven days:
Altcoins Price Performance from MarketMilk
BTC/USD: 4-hour
Bitcoin
Applying the Fib tool on the breakdown shows where sellers are likely waiting. The 50% Fib lines up with the broken channel support around $11,600 and is also near the 200 SMA dynamic inflection point. If this holds as resistance, bitcoin could find its way back to the swing low soon.
ETH/USD: 1-hour
Ethereum
The 100 SMA has crossed below the 200 SMA to confirm that the downtrend is likely to gain traction, though, so sellers might simply be waiting around the Fibs. In particular, the 61.8% retracement level could be a prime entry point for bears since it’s close to the broken triangle bottom.
LTC/USD: 1-hour
Litecoin
The moving averages just completed a bearish crossover to confirm that resistance levels are more likely to hold than to break. At the same time, these indicators are close to the channel top to add extra upside barriers.
XRP/USD: 1-hour
XRP
If any of these are able to keep gains in check, XRP could make its way back down to the swing low or channel support. After all, the 100 SMA already crossed below the 200 SMA to confirm that the selloff is more likely to resume than to reverse.
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, December 10, 2019