InstaForex

August 18, 2021

Bitcoin and Altcoins Price Analysis: Bullish Correction Levels

Bitcoin and its buddies seem to be pausing from their rallies, possibly offering buyers another chance to catch the dips.


Think these levels might hold?


BTC/USD: 4-hour

Bitcoin is inching close to the key $50,000 mark but is in the middle of a correction from its climb.


Will more buyers hop in soon?


Price is currently testing a freshly-formed rising trend line on its 4-hour time frame, and technical indicators are hinting that support might hold.

For one, the 100 SMA is above the 200 SMA to confirm that bullish pressure is in play. The 100 SMA dynamic inflection point also lines up with the trend line to add to its strength as a floor.


To top it off, Stochastic is dipping close to the oversold region to reflect exhaustion among sellers. Turning back up would signal that bulls are ready to charge again.


Is BTC/USD a buy or a sell?


LTC/USD: Daily

LTC was able to clear the hurdle on its double bottom neckline, confirming that a reversal from the selloff is in the works.


Moving averages and Stochastic are painting a different picture, though, as the 100 SMA is still below the 200 SMA while the oscillator has been indicating exhaustion among buyers.


Is LTC/USD a buy or a sell?


A correction may be in order while bulls take a break, possibly taking LTC down to the 38.2% Fib that lines up with the broken neckline resistance. The 61.8% level might be the line in the sand for a pullback, as a break below this would suggest that bears have regained control.


XRP/USD: Daily

XRP broke through that descending trend line we were eyeing last week, confirming that an uptrend is underway.



Price retreated from the 1.3500 mark, though, and might be in for a quick retest of the broken resistance. This happens to be a former support-turned-resistance zone, too!

The Fib retracement tool reveals that this area of interest coincides with the 38.2% to 50% levels, which might be enough to keep losses in check.


If so, XRP could resume the climb to the swing high and beyond. Just be careful since a bearish moving averages crossover seems to be looming, and Stochastic is starting to turn south from the overbought region.


ETH/USD: Daily

ETH also looks prime for a retest of its broken resistance around $2,500 to $2,700 while buyers take a breather from the rally.


Applying the Fib tool on the latest move reveals that the area of interest is spanned by the 38.2% to 50% levels. In addition, the 100 SMA lines up with the 50% Fib while the 200 SMA coincides with the 61.8% Fib to add to their strength as support.


If buyers hop in at any of these levels, ETH could recover to the swing high at $3,300 or higher!

Technical indicators are looking mixed, though, as the 100 SMA is above the 200 SMA while Stochastic is reflecting overbought conditions.