Crypto Update: Altcoins Fail at Resistance Levels as Bitcoin Fights for $10,000

The major altcoins tested key resistance levels in recent days, and while some of the top coins showed encouraging signs, a segment-wide breakout still hasn’t materialized. The bearish long-term setups remain dominant in the market, and even the relatively stronger BTC failed to build up bullish momentum, amid the pullback in the main global safe-havens such as U.S. Treasuries and gold

That said, the most valuable coin is still holding up near the $10,000 price level, despite dipping briefly below today, and the coin is still on a short-term buy signal in our trend model, keeping bulls’ hopes alive. The rest of the market remains under selling pressure from a broader perspective, and all signs the continuation of the altcoin bear market, even as a more sustained counter-trend move is possible in the wake of the steep losses of the recent months.

BTC/USD, 4-Hour Chart Analysis

BTC continues to be trapped in a broad triangle consolidation pattern, despite last week’s rally and its clear relative strength compared to the major altcoins. The coin has been drifting lower following a failed breakout above a short-term flag consolidation pattern, and it has to hold above the $10,000 level to remain bullish.

Our trend model is still on a long-term sell 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 rallied up to the upper boundary of the $180-$185 support/resistance zone, but as it failed to break out above that, it remains in a bearish short-term consolidation pattern. The coin is still trading in a clearly negative long-term pattern and despite the current weak rally, the downtrend is likely to continue.

ETH is still on sell signals on both time-frames in our trend model, with support zones found near $160, and $145, while above the $180-$185 zone, resistance is ahead near $200 and $230.

Ripple Stuck Below $0.26 as Litecoin Tests $75

XRP/USD, 4-Hour Chart Analysis

XRP failed to sustainably move above the key $0.26 level despite the relatively bullish day for the major altocins, and its weakness warns of another leg lower in its bear market. While a larger-scale rally looked possible in light of the coin’s recent steep losses, XRP now looks ready to dip below $0.25.

XRP remains on sell signals on both time-frames in our trend model, with support zones still found near $0.2475 and $0.23, while strong resistance zones above $0.26 are ahead near $0.28, $0.30, and $0.32.

LTC/USD, 4-Hour Chart Analysis

Litecoin bounced back together with ETH after successfully defending the $64 support level, but the rally wasn’t storng enough to overcome the $75 resistance level, leaving the declining trend intact in the coin’s market. Litecoin remains relatively weak form a broader perspective and its short-term fate will be crucial for the outlook of the whole segment.

Our trend model remains on sell signals on both time frames, with support levels found near $64 and $56, while resistance zones above the initial one near $75 are ahead 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.

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.