Crypto Update: Bitcoin And Ethereum Tick Higher As ECB Unleashes Quantitative Easing

The major altcoins had a mixed session amid the wild moves in traditional financial markets today, with BTC and ETH edging higher, but with most of the smaller coins losing some ground. The European Central Bank’s (ECB) deposit rate cut together with the re-launch of its Quantitative Easing program hurt fiat currencies across the board, while helping the most valuable digital currencies, even amid the ongoing altcoin bear market.

The technical setups in the segment haven’t changed due to today’s small moves, and the outlook for most of the top coins remains negative, with still only BTC showing encouraging short-term signs. The fact that Bitcoin held up above the $10,000 level kept our trend model on a short-term buy signal, even though our model remains bearish on both time-frames with regards to the overwhelming majority of the coins.

BTC/USD, 4-Hour Chart Analysis

BTC continues to trade in a broad triangle pattern, but thanks to today’s rally, it’s once again closer to a crucial breakout. Bulls can still hope for another move higher in the larger-scale advance that has already been terminated by the top altcoins months ago. Our trend model is still on a long-term sell signal, despite the stable short-term setup. Below the initial $10,000 level, support is 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

ETH is back near the lower boundary of the $180-$185 support/resistance zone, still within a bearish consolidation pattern. The coin continues to trade in a narrow short-term range, but the selling pressure in its market is still apparent from a broader perspective.

That said, a more sustained correction is still possible even though ETH is still on sell signals on both time-frames in our trend model. Support zones are found near $160, and $145, while above the $180-$185 zone, resistance is ahead near $200 and $230.

Ripple And Litecoin Drift Sideways In Quiet Trading

XRP/USD, 4-Hour Chart Analysis

XRP couldn’t leave the vicinity of the $0.25 level despite the positive sentiment in the market, and the coin remains clearly weak from a relative perspective even compared to the bearish altcoins. XRP looks ready to push below the support zone near $0.2475, with a possible re-test of the $0.23 level in the coming weeks.  XRP remains on sell signals on both time-frames in our trend model, with strong resistance zones ahead near $0.26, $0.28, and $0.30.

LTC/USD, 4-Hour Chart Analysis

Litecoin has been drifting sideways in a very narrow range throughout the day, failing to join the rally of BTC and ETH, with the $70 price level still being in focus in the coin’s market. The technical setup is unchanged and the coin is still likely to lead the way lower, should altcoins enter another downswing in the ongoing bearish trend.

Our trend model remains on sell signals on both time frames, with support levels found near $64 and $56, and with resistance zones 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.

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.