The major coins continued higher today after yesterday’s re-test of the panic lows, and both Ethereum and Bitcoin are trading near crucial support/resistance levels after the strong rebound. The smaller coins also registered a good session, and the total market cap of the cryptocurrencies reached $105 billion again after falling below $90 billion during the correction.
As the short-term downtrends are mostly intact in the coins, caution is required from traders, as the long-term picture still shows room for more consolidation, and reducing position sizes might be a smart move at this point.
BTC/USD, 4-Hour Chart Analysis
Bitcoin got close to the key $2600 level today, where the declining short-term trendline and a strong support/resistance level are converging. With the short-term MACD being back in neutral territory, another dip is possible, although the $2450 level acted as strong support today. That zone might be in focus in the coming period, while a break above $2650 would be a very bullish sign.
ETH/USD, 4-Hour Chart Analysis
Ethereum hit our short-term targets at $275 and $300 in early trading, and it experienced a shallow correction afterward, before recovering above the $300 level close to the US close. The short-term picture is similar to BTC on the USD chart, while the BTC chart also rebounded strongly. We still advise caution near the declining trendline, and we expect more consolidation before a sustained move towards the prior highs.
ETH/BTC, 4-Hour Chart Analysis
LTC/USD, 4-Hour Chart Analysis
Litecoin rallied strongly off its lows getting back above its prior high at $38 after touching $35 during the correction. The long-term picture remains clearly bullish, and the coin broke above the declining trendline of the short-term correction as well, triggering a new buy signal. We expect more consolidation in the coin as well, but short-term traders could hold on to a part of their positions, as a sudden bullish move is also possible.
DASH/USD, 4-Hour Chart Analysis
Dash also recovered above its declining short-term trendline after bouncing back off the $150 level again yesterday, maintaining its relative strength and getting very close to its previous highs compared to the other majors. A move towards $200 could be near and although we expect some sideways action as the broad market consolidation runs its course, the coin looks very promising.
XRP/USD, 4-Hour Chart Analysis
Ripple is still trading in its prior ranges against both the USD and Bitcoin as the technical picture is little changed despite the recent volatile period, as the dominant long-term consolidation pattern remains intact. Ripple has been experiencing sudden break-outs in the past, so we maintain our recommendation to hold the coin.
XRP/BTC, 4-Hour Chart Analysis
ETC/USD, 4-Hour Chart Analysis
ETC is still less volatile than the other majors and it quickly returned to its triangle consolidation pattern after the correction. The MACD indicator remained close to neutral throughout the move and we expect more sideways action in the $17.75-$23 range before a major move.
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