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.