Crypto Update: Altcoins Decline Again but Bulls Avoid Breakdown
The cryptocurrency had a relatively quiet and dominantly bearish session with the major altcoins losing ground in early trading but rebounding following the U.S. session. Bitcoin has been drifting sideways in the meantime, and the top digital currency continues to show relative strength, holding on to most of its recent gains in the face of the bearish segment-wide pressures and today’s steep sell-off among the traditional safe-havens such as gold, the Japanese Yen, and U.S. Treasuries.
While ETH, LTC, and XRP are all trading above their recent swing lows, and the former led the way higher during the late-day bounce, there is still no technical evidence of the reversal of the short-term trend, and odds continue to favor another downswing. BTC, on the other hand, is still in a much more positive setup, and it’s still possible that it has already started a larger-scale move, which could be a positive sign for the whole segment.
BTC/USD, 4-Hour Chart Analysis
BTC has been trading in a very narrow range today amid the market-wide sell-off, and it is still consolidating in a short-term flag pattern that developed after the early-week rally The coin is holding on the to its short-term buy signal in our trend model thanks to its stability and relative strength.
Our trend model is still on a long-term sell signal, and below the initial support zone near $10,000, 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 traded as low as the $170 and while its recent failure in the $180-$185 zone is a bearish sign, it remains in the no-man’s-land between that zone and its recent swing low. The key short-term momentum indicators are neutral, and the coin is still likely to hit a new low in the coming weeks, despite the late-day bounce.
ETH is still on sell signals on both time-frames in our trend model, with support zones found near $160, and $145, and with strong resistance levels above the key long-term $180-$185 zone ahead near $200 and $230.
Ripple Drifts Lower as Litecoin Eyes Breakdown
XRP/USD, 4-Hour Chart Analysis
XRP followed the broader market lower in early trading, and while it managed to hold up above last week’s low it failed to bounce back in late trading, showing relative weakness compared to ETH. The coin also remains weak from a broader perspective, and traders should continue to stay away from it even in the case of a larger-scale correction.
XRP remains on sell signals on both time-frames in our trend model, with short-term support found near $0.2475, a key long-term zone below that at $0.23, and with strong resistance zones ahead near $0.26, $0.28, $0.30, and $0.32.
LTC/USD, 4-Hour Chart Analysis
Litecoin quickly gave back most of its recent gains today as the oversold bounce ran out of steam, and today it showed signs of relative weakness again, warning of an impending breakdown. As LTC has been the bearish leader recently, a move below support would be a crucial negative sign for altcoins.
Our trend model remains on sell signals on both time frames, with support levels found near $64 and $56, while resistance zones are still ahead near $75, between $85 and $90, and near $100.
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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.