Crypto Update: Another Bounce Keeps Bulls’ Hopes Alive

The major cryptocurrencies continue to consolidate despite this week’s failed rally attempt and bitcoin’s apparent relative weakness, but the effects of last week’s crash are still very strong. The segment is controlled by sellers, even though the top coins avoided another technical breakdown yesterday’s, opening up the way for a more sustained correction. That said, as there is still no healthy leadership among the majors, a trend change is unlikely in the coming period.

ETH remains in a relatively strong technical position, while LTC has also been showing signs of life in recent days, but since all of the top coins are stuck below or bear key resistance level, bulls would need further improvements to consider even short-term positions here. Our trend model confirms the bearish outlook, and while last week’s lows are in no immediate danger, the downtrend could soon resume.

BTC/USD, 4-Hour Chart Analysis

BTC briefly dipped below $8,000 overnight, but the coin bounced back later on with the help of the resilience of the top altcoins, but its weakness remains a major drag on the segment. The coin is well below the key $8,400 level and while the consolidation could still continue, a move below last week’s low looks likely, with the recent breakdown level being far above the current price range.

The coin is still on clear sell signals on both time-frames in our trend model, with support zones found near $7,600 and $7,800, and with resistance zones now ahead near $8,200, $8,400, $9,200, and $10,000.

ETH/USD, 4-Hour Chart Analysis

Despite dropping below the lower boundary of its consolidation pattern, ETH showed resilience in the past couple of days, and it even managed to get close to the $180 level today, thanks to the broad bounce in the segment. The coin is still stuck in a clear downtrend and the key $180-$185 resistance zone, but it could be the key for a more sustained correction among the majors.

Our trend model is still on sell signals on both time-frames, despite the coin’s relative strength, with support zones now found near $160, and $145, and with resistance zones ahead between $180 and $185 and near $200 and $230.

XRP Targets $0.26 As LTC Struggles To Break Out

XRP/USD, 4-Hour Chart Analysis

XRP drifted higher today in the quiet environment, recovering above the $0.2475 level amid the broad bounce, but it fell short of the crucial $0.26 resistance, leaving the technical setup unchanged in its market. The short-term momentum indicators remain in neutral territory, and given the negative long-term outlook, downside risks are on the rise again.

The coin is on sell signals on both time-frames in our trend model, with support zones found near $0.2475, $0.23, and $0.21, and with resistance still zones ahead near $0.26, and $0.28.

LTC/USD, 4-Hour Chart Analysis

LTC has been holding up near the $56 price level ever since yesterday’s failed breakdown, but the coin failed to leave behind that key zone, and the short-term trading range remains intact. Should the coin mange to break out from its range, the whole segment could continue to consolidate, as LTC has been the bearish leader in recent weeks.

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

Featured image from Shutterstock

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.

Author:
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.