Crypto Update: Altcoins Continue Higher As Fed Delivers ‘Hawkish Rate Cut’

The major cryptocurrencies had another very active day, with the exception of Bitcoin, and the ETH-triggered rally continued, especially in the first half of the session. The Fed’s highly-anticipated monetary stole the show in traditional financial markets, but the mixed announcements didn’t rock the segment, despite the wild moves across asset classes. BTC’s market remained frozen even though the traditional safe-haven assets all had a very active US session.

The major altcoins, on the other hand, so elevated trading volumes again, and even though most of the smaller coins remained relatively weak, the top altcoins held on to their recent gains. The recent upgrades in our trend model remain in place and the short-term uptrends that have been established are still intact. That said, the long-term outlook for the segment hasn’t changed, and traders should treat eh current move as a counter-trend rally in the ongoing altcoin bear market.

BTC/USD, 4-Hour Chart Analysis

BTC’s technical setup is unchanged due to the continued volatility compression in the coin’s market, and the broad triangle consolidation pattern is still dominating trading. The $10,000 level remains in the center of attention, and BTC is still in a superior technical position compared to its major peers.

Our trend model is still on a long-term sell signal, while being on a short-term buy signal, and below the initial $10,000 level, support is found near $9.200, $8,400, and $8,200, while resistance zones are still ahead near $11,300, and $13,000.

ETH/USD, 4-Hour Chart Analysis

ETH settled down today following yesterday’s explosive move, but despite lagging the likes of LTC and XRP, it’s holding up well above the key $200 level, trading within its newly established short-term uptrend.

Our trend model is still on a long-term sell signal, but the short-term buy signal remains in place in the wake of today’s consolidation.  Support below the initial $200 level is found between $180 and $185 zone, while resistance is ahead near $230 and $260.

Ripple Extends Spike As Litecoin Touches $80 Price Level

XRP/USD, 4-Hour Chart Analysis

After testing the $0.30 level yesterday, XRP spiked briefly above $0.32 today, getting close to the $0.33 level. The coin is now consolidating below the key zone between those two levels after showing relative strength throughout the session.

The coin is still on a short-term buy signal, but from a broader perspective in remains relatively weak even though today’s bullish follow-through is a positive sign for bulls. That said, our trend model remains on a long-term sell-signal, with strong resistance zones also ahead near $0.3550 and $0.3750, and with support zones now found near $0.30, $0.28, and $0.26.

LTC/USD, 4-Hour Chart Analysis

Litecoin has been creeping higher after an initial pump & dump pattern today, and the coin not just managed to stay above $75, but it touched the $80 level as well before turning lower after the US close. Despite today’s new rally highs, the coin remains relatively weak, and traders should remain cautious here, even as are trend model is on short-term buy signal.

The coin is still on a long-term sell signal, due to its technical weakness, and even though the counter-trend move could continue, odds favor another leg higher in the ongoing downtrend.  Resistance zones are ahead between $85 and $90 and near $100, and with support zones found near $64 and $56.

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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.