Crypto Update: Bitcoin, Litecoin, and EOS Score New Highs as Rally Continues

The cryptocurrency segment had a quiet weekend that ended with a bang, as after days of sideways price action, BTC, EOS, and following its fresh short-term buy signal, LTC all pushed to new rally highs, hitting their highest levels in a year. The other top coins failed to reach new highs, but Ethereum has been testing the $275 level, while Dash and Monero also got close to their respective highs thanks to the broad weekend rally.

Due to the long US weekend, volatility is expected to pick up tomorrow, but for now, the short-term buy signals remain intact in most cases in our trend model, although the likes of LTC and EOS are already slightly overbought from a short-term perspective. That fact, coupled with the still bearish long-term technicals in the segment means that new positions shouldn’t be opened here, even though the rally could still continue. That said, traders could still hold on to their positions in the top coins, but with the long-term pressures in mind, strict risk management rules should still be applied.

BTC/USD, 4-Hour Chart Analysis

After trading in a bullish consolidation pattern for more than a week, Bitcoin was one of the leaders of the late-Sunday rally in the segment, getting close to the $9000 level thanks to the bullish Asian session. Now, a test of the $9200 level seems likely, even though the momentum of the move has been weak so far, and the long-term setup still warrants caution here.

Our trend model remains on a short-term buy signal, as the coin is not yet overbought according to the short-term momentum indicators, and traders could hold on to their positions here. BTC’s leadership remains a plus for the whole segment but given the lengthy counter-trend rally, we expect the bearish long-term forces to overwhelm the short-term trend soon, and a move below the $5850 level is still likely in the coming weeks. Above $9200, the next level of resistance is ahead near $10,000, while support is now found near $8400, $7800, $7600, and $7000.

ETH/USD, 4-Hour Chart Analysis

Although Ethereum failed to hit a new rally high, it gained ground together with the broader market, and the coin is consolidating just below its swing high, near the $275 price level. ETH is still showing early signs of weakness compared to BTC, but for now, the short-tem buy signal remains in place in our trend model.

In case of a breakout, resistance levels to watch are ahead near $300 and $330, but with the long-term trend in mind, traders should still only consider short-term positions here, and given the extent of the current rally, downside risks are mounting. The short-term uptrend remains intact, with key support still found between the $225 and $230 levels, with another weaker zone near $260.

Litecoin Nears $125 Level as Ripple Attempts Breakout

XRP/USD, 4-Hour Chart Analysis

Ripple remains the weakest major from a technical perspective, and although it managed to recapture the $0.40 and $0.42 levels, getting close to an upgrade on the short-term time-frame, traders should still continue to focus on the relatively stronger coins. That said, a bullish continuation is still possible here, but we continue to expect the bear market to resume after the counter-trend rally runs its course.

Initial resistance is ahead near $0.46, the upper boundary of the crucial long-term zone between $0.42 and $0.46, and a move above that could lead to the test of the $0.51 and even the $0.54 resistance levels. Below $0.40, support is found near $0.3750, $0.3550, just above $0.33 and near the $0.32 price level.

LTC/USD, 4-Hour Chart Analysis

After triggering a buy signal in our trend model on Friday, Litecoin cleared its previous swing high, retaining its leadership of the counter-trend move. The coin also topped the $110 resistance and got very close to testing the strong $125 level, while getting slightly overbought in the process. That, and the mounting downside risks led to a downgrade to neutral in our trend model, and traders shouldn’t enter new positions here.

Support is now found just above $100 and in the key $0.85-$0.90 zone, while above $125, resistance levels are ahead near $140 and $150. Despite today’s downgrade traders could hold on to their existing short-term positions, but the long-term downtrend is still expected to resume in the coming weeks, and risk management should remain a top priority here.

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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.