Crypto Update: Bitcoin Holds $7350 as Altcoins Show Weakness
It has been another two-faced session so far in the cryptocurrency segment, as Bitcoin’s strength was in stark contrast with the widespread weakness among altcoins. Besides BTC only Dash is slightly in the green among the top 20 coins, and most of the majors are back in their previous trading ranges after the failed break-out, with still only Bitcoin sporting a short-term buy signal according to our trend model.
The mixed, but dominantly still bearish short-term picture means that traders should still be cautious with new positions, as, despite Bitcoin’s ongoing rally, a test of the June lows is still likely with regards to most of the majors, and new lows are also possible in the coming weeks.
For now, the trading ranges that developed after the June lows are still intact, and the previously negatively diverging coins should still be closely monitored for signs of weakness. On the contrary, should a distinct bullish leadership emerge, a trend change would be more likely, but for now, the technical evidence suggests that the segment-wide downtrend is still intact.
BTC/USD, 4-Hour Chart Analysis
Bitcoin avoided a breakdown below its break-out levels yesterday despite the widespread altcoin weakness and it managed to recover above the $7350 support/resistance level, keeping the bullish move intact. That said, the coin failed to trigger any form of follow-through among the majors, and that makes the break-out suspicious. Further support is at the line-in-the-sand $7000 level, at $6750, and $6500, while primary resistance is ahead at $7650.
Weak Bounce in Altcoins Following the Failed Break-Out
ETH/USD, 4-Hour Chart Analysis
No altcoins triggered a short-term buy signal and most of the currencies experienced a failed breakout, but today the segment stabilized and for now, the June lows are safe. Ethereum continues to be relatively weak from a short-term perspective, as the coin settled down near the $475 level, failing to rally back towards $500.
A move the lower end of the range is likely now, with primary support found at $450, with other levels at $420, $400, $380, and $360, and with further resistance ahead between $555 and $575.
DASH/USD, 4-Hour Chart Analysis
Thanks to its scarce liquidity, Dash turned very volatile during yesterday’s wild session, but despite the spikes on several exchanges, the coin remained in a similar technical setup as Litecoin, NEO, and Monero, the other relatively weak coins. These coins failed to recover above the structural breakdown levels, and remained on a long-term sell signal, despite Bitcoin’s encouraging rally. Dash should durably recover above $265 to trigger a short-term buy signal, but a move back to $215 seems more likely now.
XRP/USDT, 4-Hour Chart Analysis
Ripple is also among the weaker coins today and it failed to stay above the $0.49 resistance level, despite the intraday rally. Now XRP is still above the key long-term level which coincides with June low, but a test of that zone is likely in the coming weeks, as the short-term setup is still bearish. Further resistance is ahead at $0.54 and at $0.575, while primary support is now found at $0.45.
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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.