Crypto Update: Altcoins Pull Back Again As Bitcoin Remains Weak

The major cryptocurrencies turned lower in a concerted fashion today, with some of the smaller altcoins, such as XMR and ETC already hitting new lows. The top coins are still holding up above their recent crash lows, but the relatively weaker BTC and LTC could soon test those levels, even as ETH and especially XRP are still safe thanks to their stronger counter-trend moves.

While XRP failed to extend yesterday’s rally, it remains the strongest among the majors, still trading within a rising short-term channel, but as ETH broke below its weakly rising short-term trendline, the outlook for the segment further deteriorated today. Traders should remain defensive here even concerning the relatively stronger coins, as the downtrend is likely to continue in the coming weeks, and downside risks are still high.

BTC/USD, 4-Hour Chart Analysis

The most valuable coin continues to show clear signs of relative weakness, and the coin left the vicinity of the $8,400 support/resistance level today, dipping below $8,200 as well. While BTC remains well above its prior swing low, and it is still north of $8,000, it could be ready to test the lower boundary of its short-term trading range after dipping below a weakly rising trendline.

The coin is still on sell signals on both time-frames in our trend model, with support zones now found near $7,800, and $7,600, and with further resistance zones ahead near $8,650, $9,200 and $10,000.

ETH/USD, 4-Hour Chart Analysis

ETH also dipped below a rising short-term trendline today in US trading, and it also briefly violated the $180-$185 support/resistance zone. While a major breakdown has been averted, for now, and the coin remains relatively strong form a short-term technical perspective, should the counter-trend move reverse, a sudden drop is in the cards in the coin’s market.

Our trend model is still on sell signals on both time-frames, with support zones found near $160, and $145, and with further resistance zones ahead near $200 and $230.

XRP Tests $0.30 As Litecoin Gets Smacked Lower

XRP/USD, 4-Hour Chart Analysis

XRP rallied up to the $0.30 level yesterday in late trading, but it turned lower together with the broader market without recapturing the key resistance. Despite the pullback, the coin remains above $0.28 and on a short-term buy signal in our trend model, but it’s still in clearly bearish long-term pattern, and we expect the bear market to resume, especially in light of the segment-wide trends.

XRP is still on a long-term sell signal in our trend model, with support zones found near $0.28, $0.26, and $0.2475, and with resistance zones still ahead near $0.30 and $0.32.

LTC/USD, 4-Hour Chart Analysis

LTC remains under clear strong selling pressure and in a bearish short-term pattern despite its recent stability. Although the coin managed to hold up above its prior crash low, it settled down below the key $56 level, and the risk of another downswing is very high. Only a move above last week’s high would hint on short-term trend change, and the coin’s weakness remains a warning sign for the whole segment.

LTC remains on sell signals on both time-frames in our trend model, with resistance zones now ahead near $56, $64, and $75, and with major support zones found near $51, and $44.

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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.

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.