Crypto Update: Bitcoin Eyes $8,000 As Altcoins Show Stability
The weekend started out on a slightly bearish note in the cryptocurrency segment, as BTC’s weakness continues to cast a shadow on the market. The most valuable coin has been steadily drifting lower today, and while volatility remains muted in its market, the coin looks ready to test last week’s lows again. The top altcoins have been showing relative stability today, but even though the likes of ETH, XRP, and LTC are holding up well above their recent lows, they still failed to make meaningful technical progress.
The underlying trend remains negative in the segment, and while the current consolidation phase might still continue, we expect another, possibly violent downswing in the coming weeks. Our trend model is still on sell signals on both time-frame in case of the top coins, and barring a broad rally among altcoins, BTC’s weakness will likely drag the market lower soon.
BTC/USD, 4-Hour Chart Analysis
BTC continues to threaten with a move below the $8,000 level despite the relative stability of the other majors, and the coin could soon test last week’s lows. BTC is trading in a bearish consolidation pattern that developed following the recent crash, and with the breakdown level being well above the current price range, downside risks remain high.
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
ETH is trading in a narrow and choppy range below the key $180-$185 resistance zone, still showing relative strength compared to BTC and most of the altcoins. The coin remains the best hope for bulls, but below the initial resistance zone, sellers are clearly in control, and traders shouldn’t enter new positions here.
Our trend model is still on sell signals on both time-frames, with support zones still found near $160, and $145, and with resistance zones ahead between $180 and $185 and near $200 and $230.
XRP And Litecoin Drift Sideways In Quiet Trading
XRP/USD, 4-Hour Chart Analysis
XRP has been trading in a narrow range, so far, today, and it’s among the strongest majors in the low-liquidity environment. We continue to be skeptical regarding the long-term outlook for the coin, as despite the several spikes higher, as the selling pressure remains apparent in its market from a broader perspective.
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 is still very stable, as it has been the case since Thursday’s failed breakdown, and the coin continues to hover around the key $56 price level, which has been in focus since, last week’s crash. Should the coin break out above its current narrow range, the whole segment could get a major boost, as LTC has been leading the swings in recent weeks.
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.
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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.