Crypto Update: Altcoins Plunge To New Lows As Selling Intensifies
The major cryptocurrencies got hit hard today after a relatively calm, but still bearish period, with the top altcoins leading the way lower. BTC held up well in the face of the sell-off, but the other majors violated or, at least, tested the previous swing lows, once again confirming the broader downtrend in the segment. While a failed breakdown remains a possibility, with BTC’s strength giving some hope for bulls, selling pressure still seems strong in the segment.
ETH and LTC have been leading the way lower both percentage-wise and from a technical standpoint, but XRP also tested its prior lows, and most of the smaller altcoins also broke below or tested their respective lows. Our trend model remains bearish across the board on all time-frames, and with downside risks still being very high, traders should remain defensive her until a confirmed short-term trend change.
BTC/USD, 4-Hour Chart Analysis
While BTC dipped below the $7,000 in a sustained fashion, it remains above its November low despite today’s violent moves among the top altcoins. The con still hit its lowest level in three weeks today, but there are still two support levels that could stop the bleeding and prevent another new low. That said, without, at least, another few majors joining BTC, a segment-wide reversal is unlikely.
BTC is still on sell signals on both time-frames in our trend model, with support zones now found near $6,750, and $6500, and with resistance ahead near $7,000, $7,400, $7,600, and $7,800.
ETH/USD, 4-Hour Chart Analysis
ETH has been one of the leaders of today’s plunge and it not just dip below its November low, it also already tested the key long-term $130 support level today. The coin hit its lowest level since late-March and while the $10 level held up, for now, today’s breakdown hints at a possible test of the prior bear market low from the end of last year.
Our trend model remains on sell signals on both time-frames, with next major support zone found near $130, and with resistance zones now ahead near $145, $160, and between $180 and $185.
XRP Breaks $0.21 As Litecoin Gets Slaughtered
XRP/USD, 4-Hour Chart Analysis
XRP continues to be very weak from a long-term technical standpoint, and today, it clearly broke below the key $0.21 level, also getting very close to its recent panic low. Although XRP avoided a new low, for now, it is very likely to continue lower, especially in light of the weakness in the market. The coming days will be crucial for bulls, as a failed breakdown pattern seems to be the only hope to avoid further, possibly steep losses.
XRP is still on sell signals on both time-frames in our trend model, with support zones now found near $0.20 and $0.1930, and with resistance zones ahead near $0.21, $0.23, $0.2475, and $0.26.
LTC/USD, 4-Hour Chart Analysis
LTC crashed through its prior low just below the key $44 support/resistance level today, confirming its technical weakness. The coin even got close to its next major support zone near $38 before the market stabilized, and should this breakdown remain intact, it could soon test the $34.50 level as well. Even the steeply declining short-term trendline remains intact in LTC’s market, while there is no doubt the direction of the long-term trend.
LTC remains on sell signals on both time-frames in our trend model, with support zones now found near $38 and $34.50, and with resistance zones ahead near $44, $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.