Analysis: Bitcoin Bounces Back despite Negative News
The cryptocurrency market experienced very choppy conditions yesterday, as several waves of selling hit BTC and the broader market amid a string of bad news. The price of the most valuable coin held up over the critical $2450 support amid the bearish sentiment, but it failed to recover above the primary resistance at $2600 so far.
Bitcoin tested that level today in early trading, following a positive announcement from South Korea, but most of the other majors are lagging BTC here, with Ethereum only producing a weak bounce off $200. With the short-term MACD indicator getting close to a bullish cross in the case of BTC, a rally above resistance could open up the way for a test of last week’s high.
BTC/USD, 4-Hour Chart Analysis
Most of the other majors are virtually unchanged since yesterday’s report, with only Monero and Dash showing considerable strength following the dip. Litecoin, Ripple, and Ethereum Classic have been trading in narrow ranges since yesterday morning, while small cap coins are also stuck near their short-term correction lows. Let’s take a look at the charts and the diverging performance of the majors so far this week.
ETH/USD, 4-Hour Chart Analysis
Ethereum is barely above key support at $200 despite showing resilience during yesterday’s nervous trading, as the more than one-month long correction pattern remains intact. That said, the long-term picture remains positive for the coin, and a rise above last week’s highs and the declining trendline would confirm a trend change. Further support is found at $170 while a strong resistance zone is ahead between $235 and $250.
LTC/USD, 4-Hour Chart Analysis
The coin is stuck in a triangle consolidation pattern, and now between the $38 and $44 levels, with the long-term picture still being neutral. The $38 level provides additional support, while we still expect the next major move to be a test of the $58-$60 zone. The short-term MACD is close to a bullish signal, just as in the case of BTC.
Dash seems to have formed another higher low yesterday, boosting the chances of a rally to test the prior high above $220 in the coming period. The coin remains the strongest major regarding technicals, and the MACD indicator got back to neutral territory, with the short-term uptrend still being intact.
XRP/USD, 4-Hour Chart Analysis
Ripple failed to bounce back above the crucial $0.1750 level yesterday, as the currency is among the weaker majors in the choppy environment this week. With the long-term correction pattern being intact, the coin should at least breach the $0.20 level for a trend change although our trend model remains on a buy signal, with no lower low being formed on the chart for two weeks now.
ETC/USD, 4-Hour Chart Analysis
ETC is virtually unchanged since yesterday morning’s decline, still holding up above the key primary support level near $14. Short-term traders are still advised to wait for a move above the $16 level before entering new positions, while long-term investors could still add to their positions here.
XMR/USD, 4-Hour Chart Analysis
Monero is acting strong so far this week, trading just below the strong resistance at $46 after yesterday’s healthy bounce. The coin stayed above the declining trendline after the correction, and it could be ready for a move up to the $50 level, especially if the largest coins emerge from the current downswing in the coming days.
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