Crypto Update: Bitcoin Leads Bounce but Short-Term Trend is Still a Question

The market looks much better for bulls following the weekend, with all of the major coins trading well above the recent lows, and some of them already being on short-term buy signals. That said, the overall picture is mixed, and despite Bitcoin’s strength, Ethereum and Ripple are in weaker technical setups, and there are plenty of laggards among the smaller coins as well, suggesting a bumpy road ahead.

The broader leadership that we have been missing during the Saturday bounce is now developing, and although further consolidation is likely, with a possible test of the Friday lows, the correction might have run its course, and the short-term trend could be already changing.

The long-term setup is virtually unchanged in most cases, as the coins are safely above the February lows, and the recovery is still likely to continue, although the broad declining trends are still intact.

BTC/USD, 4-Hour Chart Analysis

BTC is close to testing the $10,000 level again after posting a higher short-term high, showing clear relative strength compared to the majority of altcoins. As Bitcoin has been solely showing the way recently, the bullish development is encouraging for the coming weeks, but until a break-out from the downtrend, investors should still expect volatile sell-offs.

Above $10,000, resistance is ahead at $10,500, $11,300, and $11,750 while support is between $9000 and $9200 and at the recent low near $8400.

ETH/USD, 4-Hour Chart Analysis

Ethereum is slightly lagging BTC during the current bounce, as it is still stuck below the key resistance zone between $740 and $780. That said aggressive traders could enter positions here, but the short-term trend is just neutral. Long-term investors could still add to their holdings here, even as the broad declining trend is still intact, with support at $640 and $625, and further resistance found at $845.

Altcoins Leaning Bearish

As correlations between the majors are still elevated, although lower than during last week’s selloff, the short-term trend change is not confirmed. With the likes of Litecoin and Dash showing strength besides BTC, the segment is likely forming a bottom, but bulls would need more coins showing robustness.

LTC/USD, 4-Hour Chart Analysis

LTC is trading below $200 after the test of the $170-$180 support zone during the sell-off, and it remains one of the strongest digital currencies from a technical standpoint. That said, a move above the key level and the short-term trendline would be needed to establish a clear bullish trend, with plenty of resistance ahead between $215 and $235.

Ripple, NEO, ETC, Stellar, and IOTA are all relatively weak, with XRP still fighting with the $0.85 level after holding up well during the selloff, while Monero is still yet to post a higher swing high as well after its correction. Cardano and Stellar

Stay tuned for our detailed technical analysis coming out later today.

Featured image from Shutterstock

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.