Crypto Update: Altcoins Remains Weak As BTC Fights For $8,000
The major cryptocurrencies turned lower again following yet another failed bounce today, with the relatively weak altcoins, such as ETH and LTC leading the way lower. BTC, which has been boosted by the continued Brexit chaos over the weekend, also failed to extend its rally, dipping back below $8,200 and getting close to the $8,000 price level.
While the top coins continue to trade without a clear direction, leaving the post-crash consolidation ranges intact, the broader picture remains bearish. All signs still point to another leg lower in the ongoing broader downtrend, even though XRP remains a positive outlier from a short-term perspective. With most of the majors once again edging closer to their recent highs, the odds of another breakdown are on the rise, and our trend model continues to confirm the bearish outlook.
BTC/USD, 4-Hour Chart Analysis
BTC continues to trade in its short-term trading range, despite its yet another failed rally attempt, and the $8,000 level remains at the center of attention. The coin’s brief period of strength didn’t lead to technical improvements in its market, and a move below its prior swing low remains very likely in the coming weeks.
The coin is still on sell signals on both time-frames in our trend model, with support zones found near $7,800, and $7,600, and with resistance zones ahead near $8,200, $8.400, $8,650, $9,200, and $10,000.
ETH/USD, 4-Hour Chart Analysis
ETH remained stuck below the lower boundary of the key $180-$185 support/resistance zone, failing to regain its post-crash relative strength. While the $160 level is still in no immediate danger, the coin is now close to its weekend low, and volatility could increase in the coming days. Downside risks are still very high here, and traders should stay away from entering new positions here.
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 Breaks Trendline As Litecoin Threatens With Breakdown
XRP/USD, 4-Hour Chart Analysis
XRP tested the $0.30 level yet today, but the coin failed to recapture the key level, and due to the following dip, it clearly broke below the lower boundary of its rising short-term trend channel. With that, in light of the segment-wide trends, our trend model switched to a short-term sell signal, even though the coin might continue to consolidate its recent steep losses.
XRP is also 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
Despite its bounce together with the broader market, LTC remained stuck below the key $56 support/resistance level, and the coin remains worryingly weak on all time-frames. The weak rally attempt warns of a possible breakdown in the coming days, and while further sideways price action is possible downside risks are increasing.
LTC remains on sell signals on both time-frames in our trend model, with resistance zones 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.