I’m seeing plenty of strong bullish breakouts on the altcoin charts these days! Will we see more gains this week?
Cryptocurrencies were back in the black for the previous week, led by ETH with an impressive 13.77% gain.
BTC is behind the pack but still enjoying a decent 4.59% price increase next to XRP, which is up nearly 6%.
Check out this ranking of bitcoin and its buddies for the past seven days:
Bitcoin broke out from the symmetrical triangle pattern we were watching last week, and it looks like buyers took the upper hand!
This means that BTC could be in for a climb that’s around the same height as the chart formation, which spans $8,850 to around $10,350.
A bullish moving average crossover seems to be taking place, likely drawing more buyers to push prices further north. However, Stochastic is already closing in on the overbought zone to signal exhaustion among buyers soon.
Ethereum also made an upside breakout from an earlier triangle consolidation pattern, indicating that bulls are charging.
The 100 SMA already crossed above the slower-moving 200 SMA to confirm that the uptrend is more likely to gain traction than to reverse.
Price is also climbing past the mid-channel area of interest on the rising channel visible on its 4-hour time frame. This means that ETH could be on its way to testing the top of the channel closer to the $300 major psychological mark.
Litecoin appears to be done with its decline as it forms a double bottom pattern on its 4-hour time frame. Price has yet to test the neckline and break above the resistance to confirm that a reversal is due.
If that happens, LTC could be in for a rally that’s roughly the same size as the chart formation. However, Stochastic is already indicating overbought conditions, so there’s still a chance that resistance could hold.
Then again, the 100 SMA is cruising above the 200 SMA to suggest that there’s more upside for litecoin. Price is also moving above both indicators, so these could hold as dynamic support levels on dips.
XRP also seems to be in the mood for a reversal as price created an inverted head and shoulders pattern on its 4-hour time frame. A break above the neckline has yet to take place to confirm that an uptrend would follow.
The moving averages just made a bullish crossover to confirm that more gains are in the works, and the 100 SMA is holding as dynamic support.
Stochastic has a bit of room to climb before reflecting exhaustion among buyers and a possible return in bearish pressure. This might just be enough to allow XRP to test the neckline resistance soon, but better watch those candlesticks closely to gauge if a bullish breakout is likely!
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!