Crypto Update: Altcoins Remain Under Pressure As Bitcoin Holds Gains
The major cryptocurrencies spent most of today’s session in the red, and even though BTC continued to show relative strength, altcoins failed to join the most valuable coin’s rally. The fact that Bitcoin held on to its recent gains in the face of today’s global rally in risk assets is a great sign for the coin, an in the past few weeks BTC sold off during the risk-on periods. That said, the overall picture remains bearish in the segment and as none of the top coins joined the really in earnest, downside risks remain prominent here.
The likes of ETH, LTC, and XRP failed to recapture the key technical resistance levels that have been in focus over the past few days, despite the oversold momentum readings and that also confirms the bearish pressures in the market. Our trend model is on sell signals on both time frames with regards to the majority of the coins as well, the technical weakness continues to be apparent among the small-cap coins too.
BTC/USD, 4-Hour Chart Analysis
BTC continues to be the undisputed leader in the segment, and today, it once again proved its relative strength, as it trod water in the face of the broad sell-off among the top altcoins. The coin remains above the key $10,000 price level and should it continue the rally that started on Monday, a larger-scale breakout could still be ahead.
Our trend model is still on a long-term sell signal, but the short-term buy signal is also in place thanks to today’s stability. Below $10,000, support is still 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
While ETH managed to briefly climb back above the $180 level, it failed to extend its gains north of its recent breakdown level, confirming the ongoing downtrend. The oversold short-term momentum readings are now cleared and the coin is likely to resume the decline in the coming days, even though a more sustained correction is still in the cards.
ETH is still on sell signals on both time-frames in our trend model, and below the initial support zone near $160, the next major level is found at $145, while above the $180-$185 zone, strong resistance levels are ahead near $200 and $230.
Ripple Back Below $0.26 as Litecoin Fails at $75
XRP/USD, 4-Hour Chart Analysis
Ripple fell back below the key $0.26 level today, despite recovering above it yesterday, leaving the bearish overall trend intact in the coin’s market. XRP could continue to consolidate before the next move lower, but we still expect the bull market to resume. XRP is still on sell signals on both time-frames in our trend model, and below $0.26support is still found near $0.23, while strong resistance zones are ahead near $0.28, $0.30, and $0.32.
LTC/USD, 4-Hour Chart Analysis
Litecoin topped out above the $70 level yesterday but it failed to get close to the key long-term support/resistance zone near $75. The coin remains relatively weak compared to the other majors, and it is still likely to lead the way lower in the coming weeks,
Our trend model remains on sell signals on both time frames, with support levels found near $64 and $56, and with resistance zones 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.