Crypto Update: Bitcoin and Ethereum Fail at Trendlines, Triggering Pullback
Despite the recent bullish price action, the two largest coins have been struggling to get over the dominant broad declining trendline, and as the upside momentum faded away the majors turned lower in a concerted fashion today in early trading.
The move warrants a more defensive position for short-term traders, but the long-term setup remains positive, and with the exception of the already slightly stretched coins, ETC, Monero, LTC, and Bitcoin, the pullback could be used to accumulate more coins.
With the correction lows far below the current price levels in most cases, and several coins are still more than 100% over the minimum, even a deeper dip would keep the bullish setups intact.
BTC/USD, 4-Hour Chart Analysis
With the rising short-term trendline now broken traders should watch the support levels found at $10,500, $10,000 for reversals with the lie-in-the sand zone still being between $9000 and $9200, while above the key resistance zone between $11,300 and $11,750, the main targets are at $13,000 and $14,250.
ETH/USD, 4-Hour Chart Analysis
Ethereum also turned lower, as the first test of the long-term trendline failed, as expected. More consolidation is likely before a clear break-out from the dominant pattern, but the outlook for the coin remains positive from an investment standpoint. The currency dipped below primary support at $845 today, with further levels at $780 and $740, while resistance is ahead at $910 and $1000.
All Majors in the Red, Ripple Back Below $1
XMR/USDT, 4-Hour Chart Analysis
With basically the whole segment sporting losses, yesterday’s encouraging move in Ripple is also mostly erased, while the previously leading Monero is trading in a short-term correction after reaching overbought short-term momentum readings. The coin could test the break-out level at $335 in the coming days, but we still expect the rally to continue afterward.
NEO, Cardano, ETC, and Stellar are once again the laggards among the majors, despite Stellar’s positive move yesterday, while Dash, IOTA, Bitcoin Cash, and Litecoin are performing in line with the segment average amid the selloff.
Stay tuned for our detailed technical analysis coming out later on today.
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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.