Crypto Update: Bitcoin Stalls at $6750 as Rally Attempts Fade
The top coins are trading slightly lower today in early trading, as the rally of the last two days ran into strong resistance. The majors are all holding up above last week’s lows but the short-term downtrend that could have significant long-term implications is clearly intact. The overnight dip was partly fueled by news on yet another possible exchange hack, this time Bithumb, but the losses are limited so far.
Correlations are still elevated between the majors even as relatively narrow trading ranges dominate the market. Trading activity remains low, as the segment continues to consolidate last week’s wild swings, and summer trading conditions are also starting to set in. The total value of the market is hovering around $280 billion, as the rebound failed to hold the capitalization above the $300 billion mark.
BTC/USD, 4-Hour Chart Analysis
Bitcoin failed to regain the $6750 resistance despite several rally attempts, as it continues to trade dangerously close to last week’s lows and the crucial long-term resistance between $5850 and $6000. The short-term trading range around the $6350 level is intact, and the coin remains on a sell signal on the 4-hour time-frame. Further resistance is ahead near $7000 and $7350, while primary support is currently found at $6500.
Ethereum Still Strong but Short-Term Picture Shaky for Altcoins
ETH/USD, 4-Hour Chart Analysis
While the long-term outperformance of Ethereum is still impressive, the other previously leading coins are not ahead of the broader market, and without a clear leadership, a sustained rally is not realistic. The current setup favors at least a re-test of the lows, and possibly another leg higher with regards to the majority of the top altcoins.
Ethereum is trading above the $500 level despite the early selloff today, and the coin is just below the declining trendline, although with several strong resistance levels above the current price, the coin will likely follow the broader market lower in the coming days. Primary resistance is still ahead between $555 and $575, while further support below $500 is found at $450, $400, and $380.
XRP/USDT, 4-Hour Chart Analysis
Ripple remains below the $0.54 level, EOS is just above the $10 support, and the most bullish Binance Coin is also drifting lower today, with IOTA’s short-term relative weakness being apparent. Among the long-term laggards, Litecoin, Dash, and Monero are all under pressure, and should they breach last week’s lows, selling could intensify again.
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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.