Crypto Update: Bitcoin Continues to Lead, Tests $6750 Again
Bitcoin’s stability and relative strength continue to be the most promising signs in the cryptocurrency segment, with the largest coin pushing modestly higher Friday in late trading before pulling back slightly today. Among the other majors, only Litecoin is showing considerable short-term relative strength, while the largest altcoins are clearly lagging behind BTC.
Thanks mostly to Bitcoin, the total value of the market climbed by $5 billion, and topped $215 billion, with BTC’s dominance increasing yet again. The diverging technical setups point to further relative gains for Bitcoin, as the broad bearish trend in altcoins still looks very strong. The lack of follow through in Ripple and the still missing bullish leadership suggest at least a test of the lows in the coming weeks with regards to most of the top coins.
BTC/USD, 4-Hour Chart Analysis
While Bitcoin left the narrow short-term trading range in the past 24 hours, as the recent swing high is still ahead as resistance, the coin remains on a neutral signal in our trend model. BTC briefly topped the $6750 level after clearing $6500, but for now, the rally halted.
A test of the $5850 level is still likely in the coming weeks, given the weakness in the segment, but a successful test could set up a more durable rally in the largest coin. Further support levels are found at $6275 and $6000 while resistance zones are ahead near $7000 and $7250.
ETH/USD, 4-Hour Chart Analysis
Ethereum’s weakness is in stark contrast with BTC’ strength, as ETH failed to gain ground even in the thin weekend environment, with its price being capped by the $275-$280 resistance zone. A test of the low near $260 and even another leg lower in the downtrend seems likely and the coin remains on a sell signal both from short- and long-term perspectives. Further resistance is ahead at $300 and $335, while support is found at $250 or $235.
No Real Momentum Behind Rally
XRP/USDT, 4-Hour Chart Analysis
While Ripple continues to hold up above the $0.32 level, the coin failed to follow BTC higher and the lack of momentum is suspicious, even as XRP is still on a short-term buy signal in our trend model. The currency is in a broad declining trend, and despite the still oversold long-term momentum readings, it remains on a long-term sell signal, and the current rally is likely only a counter-trend move. Primary resistance is ahead at $0.35, while support is found at $0.30 and near $0.26, with a short-term level at $0.3130.
LTC/USD, 4-Hour Chart Analysis
LTC has been drifting higher in the past 24 hours, holding up above the weak rising trendline within the broader bearish consolidation pattern. The coin still looks vulnerable, with a test of the $50 level looking being likely in the coming period, and traders should still stay away from LTC. The $56 support level is in focus currently, with strong resistance ahead near $64, while a weaker level is ahead below that near $59.
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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.