Crypto Update: Bitcoin Hits $7000 as Market Shows Signs of Life

The past 36 hours marked an important change in the behavior of the cryptocurrency segment, as several coins started to rise in a concerted fashion, with the likes of Dash, IOTA, Monero, Tron, and Cardano all moving above short-term resistance, and with the top coins also drifting higher. While the negative long-term trends clearly remain intact in the case of the major altcoins, several currencies got upgraded in our trend model with regards to the short-term signal.

Bitcoin is now on s short-term buy signal after clearing the $6750 level and climbing above $7000 today.  Ethereum remains the biggest drag on the segment, still trading clearly below $300 and on a short-term sell signal, lagging the market average and especially the coins on the move. On a bullish note, correlations are clearly breaking down, and the third largest coin, Ripple is still moving slightly on its own paths, already trying to tackle the long-term trendline.

BTC/USD, 4-Hour Chart Analysis

Bitcoin is trying to establish a broader rising trend after a period of relative strength, and although it already rose above the $7000 level, there are still important levels above. For now, the coin remains on a neutral long-term signal, but traders could play the developing trend.  Initial resistance is now ahead between $7200 and $7300, with a stronger zone between $7650 and $7800, while support is found, $6750, $6500, and near $6275.

ETH/USD, 4-Hour Chart Analysis

Not much has changed in Ethereum’s technical setup despite the segment-wide bounce, as the coin remains clearly in a short-term downtrend, although ETH managed to get above the $275-$280 resistance zone. That said, the $300 level is still ahead and the long-term break-down level at $400 is miles above the current price. Ethereum remains on sell signals on both time-frames, but a move above $300 could open up the way for a rally to $335 or even the strong $360 level.

Still Just a Short-Covering Rally, Despite Bullish Momentum

XMR/USDT, 4-Hour Chart Analysis

The widespread rally among altcoins is a bullish sign and given the still depressed sentiment and the oversold long-term momentum readings, a more durable could be underway. That said, long-term investors should still treat the rally as a counter-trend move in most cases, and they should wait for a confirmed trend change before re-entering full positions.

XRP/USDT, 4-Hour Chart Analysis

Ripple is the perfect example of the contrast between the short- and long-term trends as, despite the recent rally, the long-term trend is still clearly intact, and the coin is well below the structurally important $0.42 level. So while the coin could continue to gain ground in the coming weeks, odds still favor at least a re-test of the lows form a longer-term perspective.

LTC/USD, 4-Hour Chart Analysis

Some of the most oversold coins recorded stellar gains, such as Dash, NEO, and IOTA, and as several coins could build short-term uptrends, a bullish leadership could develop in the coming days. That could propel a more durable segment-wide rally, but with the likes of Liteocin and Ethereum lagging, traders should remain cautious. For now, we remain generally defensive given the bearish long-term setups, but the short-term outlook clearly improved.

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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.