Crypto Update: Altcoin Breakdown Looms As BTC Remains Stable

The cryptocurrency segment continues to be relatively quiet as the post-crash consolidation ranges are still intact in the majors’ markets. The long-term downtrend is clearly intact in the segment in the wake of the one-week-long correction, and with several relatively weaker altcoins trading near their recent swing lows, the trend could soon resume. Even the stronger top coins remain within striking distance of their lows and should volatility rise again, new lows could soon follow.

Our trend model continues to confirm the bearish outlook as well and following Wednesday’s failed rally attempt, even a short-term trend change seems unlikely here. That said, no major support level has been broken in this week, and as BTC is holding up relatively well, bulls still have a small chance for a more sustained counter-trend move. Traders should remain patient until we see signs of technical strength, as downside risks remain.

BTC/USD, 4-Hour Chart Analysis

BTC tried to move above its short-term resistance level near $7,400 several times in the past 48 hours, but the coin continues to be stuck in a very narrow range just below the zone. BTC is still trading above its previously dominant declining trendline, but even as its prior low is safe, for now, the lack of progress is a negative sign for bulls. While the coin could lead a more sustained counter-trend move, odds still favor another leg lower int eh coming weeks.

The coin is still on sell signals on both time-frames in our trend model, with support zones found near $7,000, $6,750, and $6500, and with resistance ahead near $7,400, $7,600, $7,800, and $8,200.

ETH/USD, 4-Hour Chart Analysis

ETH continues to hold up above the $145 level and its prior swing low, also trading in a relatively narrow range, but it has been showing technical weakness compared to the stable BTC. The coin is well below its October low, leaving the key technical breakdown intact and even though the consolidation period could still continue, the selling pressure remains apparent in ETH’s market.

Our trend model remains on sell signals on both time-frames, with support zones found near $145 and $130, and with resistance zones ahead near $160, between $180 and $185, and near $200.

XRP Tests Trendline Again As LTC Fails To Recover

XRP/USD, 4-Hour Chart Analysis

XRP has been outperforming the market average in the past 24 hours, trying to rally above its steeply rising short-term trendline, without much success. The coin is still very weak from a broader technical perspective, and while a more significant correction could be ahead in the wake of the huge losses of the past month, the segment-wide trends warrant caution.

XRP is still on sell signals on both time-frames in our trend model, with support zones found near $0.21 and $0.20, and with resistance zones ahead near $0.23, $0.2475, $0.26, and $0.28.

LTC/USD, 4-Hour Chart Analysis

LTC remains the weakest among the top coins, from a short-term standpoint, and another breakdown seems likely in the coin’s market as soon as in the coming days.  That said, the coin is holding up above the $44 level, for now, and in case of a segment-wide rally attempt, it could squeeze shorts with another spectacular, and prone-to-fail, spike.

LTC remains on sell signals on both time-frames in our trend model, with support zones found near $44 and $38, and with resistance zones ahead near $51, $56, and $64.

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Disclaimer:  The analyst owns cryptocurrencies. He holds investment positions in the coins, but doesn’t engage in short-term or day-trading, nor does he hold short positions on any of the coins.

Author:
Trader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.