Crypto Update: Bitcoin Continues to Shine Amid Global Turmoil

The fresh bout of volatility in traditional financial markets continues to dominate the cryptocurrency segment, as although sentiment improved compared to Monday’s panicky condition, the key safe-haven assets are still enjoying strong inflows. This setup is clearly favoring BTC relative to altcoins, but on a negative note, the most valuable coin is lagging behind the likes of gold and US Treasuries, which hit new multi-year lows in the past couple of days.

That said, BTC and XMR are still on short-term buy signals in our trend model, as Bitcoin found support near the key $11,300 level, while Monero scored a new recovery high today. The other majors are all showing weakness, despite the intraday rally attempts, and overall, the bearish market conditions continue to dominate the segment. ETH is still stuck below $230, Litecoin is trading well below the $100 price level, while XRP is just holding up above the key long-term $0.30 support level.

With the severe divergences and the long-term technicals in mind, traders should continue to focus on the relatively stronger coins, even in the case of a broader recovery rally, and strict risk management rules should be applied, even when entering short-term trading positions. While the rally in BTC and the consolidation in the major altcoins could still continue, we expect selling to resume in the segment in the coming weeks.

BTC/USD, 4-Hour Chart Analysis

After pulling back following Monday’s surge, Bitcoin respected the crucial $11,300 support level, solidifying its freshly formed short-term uptrend. The coin is now eyeing a move above the prior swing high, which could lead to a test of the $13,000 level. The coin is trading above the prior consolidation zone, and without taking the rest of the segment in consideration, even a new rally could be in the cards in the coming weeks.

Despite the current short-term strength, we expect the market-wide trends to overwhelm the short-term momentum in BTC’s market, but for now, our trend model remains on a short-term buy signal.  Below $11,300,  further support zones are found near $10,000 level, $9,200, $8,400, and $8,200, while the next major resistance zones are ahead near $13,000 and at the prior rally high near $14,000.

 ETH/USD, 4-Hour Chart Analysis

Ethereum lost ground yet again today, despite briefly topping $230 earlier on this week, and the coin continues to be stuck below the dominant declining trendline, within the bearish consolidation pattern that developed following the July sell-off. While ETH is still well above its prior swing low and the $200 support, the broader picture remains clearly bearish, especially in light of the failed rally attempt of this week.

Although we can’t rule out a stronger countertrend rally, price action remains suspiciously weak in the coin’s market, and with the broad weakness among altcoins in mind, odds still favor a move below $200 and a test of the recent swing low. Below $200 further support levels zones found near $180, and $160, while above $230, resistance levels ahead near $260 and $275.

Ripple and Litecoin Hit One-Week Lows

XRP/USD, 4-Hour Chart Analysis

The relatively weak XRP drifted lower, failing to join the intraday rally attempts, and the coin is trading well below the $0.33 level that it touched during its recent rally attempt. The coin is now trading near the lower boundary of its short-term trading range, and a test of the key long-term support zone near $0.30 likely could be ahead in the coming days, barring a quick and broad recovery in the segment.

Our trend model is still on clear sell signals on both time-frames, and a major bullish move seems less and less likely, as the coin had several opportunities to show strength, but every spike got overwhelmed by the apparent selling pressure in its market. Below $0.30, strong support is found near $0.28 and $0.26, while resistance is ahead near $0.32, just above $0.33, and near $0.3550 and $0.3750.

LTC/USD, 4-Hour Chart Analysis

Litecoin started out the week in a bullish fashion, spiking above $100, but since the failed breakout it’s been all downhill for the coin, and it showed clear signs of relative weakness today. LTC violated the $90 level, the upper boundary of the key long-term $85-$90 zone, and while it hit a fresh one-week low, it stayed above the $85 level and recovered above $90 in late trading.

That said, the coin remains in a bearish short-term technical pattern and our trend model is on sell signals on both time-frames. Although a move above $100, and a renewed buy signal is still possible here, a major breakdown is more and more likely in the coming weeks. Further support is still found near $75 and $64, with resistance zones above $100 ahead between $110 and $112 and near $125.

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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.