Analysis: Coins Broadly Lower as Bitcoin Struggles with the $4500 Level
Most of the major cryptocurrencies are slightly in the red today, as the recent strong rally in BTC seems to be running out of steam. The severely overbought currency breached the $4500 level yesterday before turning lower again, and that’s a drag on the whole segment, although Bitcoin Cash is still rallying strongly since the first 8 MB block was mined. The forked coin is hovering around the 10% of its “big brother’s” value, and with that, it’s the third valuable currency as of now. BTC is still well within its short-term uptrend, despite the recent consolidation, but the long-term picture points to a deep correction in the coming weeks.
Bitcoin/USD, 4-Hour Chart Analysis
Dash is following the broader market lower after its break-out, which reached our long-term range target, while the previously surging NEO and IOTA are also meaningfully lower today. Ethereum, Ethereum Classic, Ripple, and Monero are little changed while Litecoin is the strongest long-standing major, being up by around 5% today. Let’s see how the charts of the majors are shaping up before the weekend.
ETH/USD, 4-Hour Chart Analysis
ETH is still stuck near the $300 level, consolidating its strong bounce off the correction lows from July. The uptrend that started almost one month ago is clearly intact, and a move higher is likely in the coming days, with strong resistance ahead at $330 and above that at $380, and support below at $285.
LTC/USD, 4-Hour Chart Analysis
Litecoin has rallied back to the $46 resistance level since getting back on a short-term buy signal and the short-term uptrend. The coin still faces strong resistance near $50 with the prior highs also ahead near $56. We still expect a rally to new highs in the coming weeks, as the long-term picture remains constructive.
DASH/USD, 4-Hour Chart Analysis
Dash hit the long-term range projection target just below $260 after its break-out yesterday before entering a short-term correction. Given the length consolidation before the move, the coin might be headed even higher in the coming period, as the long-term picture is not overbought. The currency found support near $230 and that could be a base of another leg higher.
XRP/USD, 4-Hour Chart Analysis
Ripple has been trading in a very narrow range in recent days, but it remains among the weakest majors, still being trapped in a declining trend. The $0.16 level remains in the center of attention, as trading volumes are very low. Resistance is ahead near $0.18, and the declining trendline is also found near that price level. The currency is still neutral regarding both short- and long-term momentum after the lengthy correction.
ETC/USD, 4-Hour Chart Analysis
Ethereum Classic also trading with low volatility and low volumes, near its correction lows, building a long-term base. The $14 level is the mid-point of the support zone and the coin is hovering right around that line. The declining trendline is ahead just above the current price, and a break-out would signal another leg higher in the long-term uptrend.
XMR/USD, 4-Hour Chart Analysis
Monero has been virtually unchanged throughout the week, trading above the key support level at $46. The triangle consolidation pattern remains intact, but a break-out of the formation is expected in the coming days, with primary targets at $53.50 and near $58.
NEM/BTC, 4-Hour Chart Analysis
NEM settled down today, together with BTC as the volatile range in the pair remains intact. We still expect Bitcoin to correct more, and that could trigger a rally towards the prior swing high near 0.00009. Support levels are still found near 0.0000575 and 0.000048, while strong resistance is at 0.000075.
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