I’m seeing opportunities to catch the long-term trends on these crypto charts!
Will buyers keep defending these support levels?
Bitcoin has tumbled below a key support zone visible on its daily time frame, putting it on track towards testing the next floor.
Price is making its way down to the $40,000 major psychological mark, which happens to be right smack in line with the 200 SMA dynamic inflection point.
Are buyers likely to defend this level?
The 100 SMA is above the 200 SMA on this long-term time frame, suggesting that support levels still have a pretty good chance of holding. If bitcoin falls through, the next floor could be at $30,000 handle.
Litecoin is still in correction mode on the daily time frame, as price is hanging out around the 61.8% Fibonacci retracement level.
A larger dip could reach the long-term ascending trend line that has been holding since the start of this year. This also happens to coincide with the 100 SMA dynamic inflection point, which is above the 200 SMA to signal that the climb is likely to carry on.
Stochastic has a bit more room to head south before reflecting oversold conditions, so the pullback could keep going until the oscillator turns back up.
If any of the support levels, LTC could make its way back up to the swing high at $417 and beyond!
ETH is also on a stellar climb but is pulling back to gather more buying energy.
Price is down to the 50% Fib retracement level but could still go for a larger correction, as Stochastic has yet to indicate exhaustion among sellers.
The next support zone is at the 61.8% Fib or $2,872 then the rising trend line near the $2,500 mark. This lines up with the 100 SMA, which is above the slower-moving 200 SMA to confirm that bullish pressure is in play.
Note that the gap between the moving averages is widening to reflect strengthening bullish momentum, so ETH might make its way back to the swing high soon.
Dogecoin seems to be finding its legs, as price bounced off the area of interest near its 200 SMA dynamic inflection point.
The 100 SMA is above the 200 SMA while Stochastic appears to be pulling out of the oversold area. If buyers return (or if Elon Musk tweets about DOGE again), price could aim for the higher Fib extension levels marked above!
If this is your first time checking out crypto charts, keep in mind that there is a considerable amount of risk in trading cryptocurrencies due to their inherent volatility and sensitivity to headlines. Be careful out there!