Crypto Update: Bitcoin Tops $11,000 as Altcoins Jump

The cryptocurrency segment is having yet another bullish session, with Bitcoin still leading the way higher, but the major altcoins also joining the party. All of the top coins are significantly higher today, but due to the recent significant divergences between them, the majors are in different phases of their technical cycles.

While Bitcoin is already overbought due to its strong rally, the top altcoins are not that stretched even though Ethereum is also close to overbought territory according to the short-term momentum indicators. On the other hand, due to its persistent relative weakness, Ripple only triggered a short-term buy signal in our trend model today, while Litecoin, the previously leading altcoin has been struggling to regain its bullish momentum today.

Despite today’s broad rally, traders should remain aware of the still bearish long-term technicals, and reduce their exposure to the already overbought coins such as BTC. In the wake of the lofty gains of the recent days, at least a deeper correction is very likely from the current levels, even though there is still no indication of a major top here.

BTC/USD, 4-Hour Chart Analysis

Bitcoin got very close to hitting the next major resistance zone near $11,300 after surging past the $10,000 level, and with that move, the coin is now clearly in overbought territory with regards to the short-term momentum indicators. Given the lengthy counter-trend rally and the stretched technicals, the coin is now on short-term sell signal in our trend model, and traders shouldn’t enter new positions here.

While the rally might still continue following a correction the mounting long-term risks don’t support the bullish scenario, and bulls should, at least, wait for a deeper pullback before re-entering the market.  Above $11,300, the next major resistance zone is ahead near $13,300, while support is now found near $10,000, $9400, $9200, and $8400.

ETH/USD, 4-Hour Chart Analysis

Ethereum managed to climb above the $300 level for the first time in almost a year after leaving behind the $275 level, and the coin is already approaching overbought territory regarding the short-term momentum indicators. Given the hostile long-term technicals, traders shouldn’t enter new positions at these levels, despite today’s rally in the major altcoins.

The coin could still reach the $330 level in the coming days, but, we still expect a steep sell-off soon, as the long counter-trend rally is likely nearing its end. Our tend model is now on a neutral short-term signal, while being on a long-term sell signal, with key support levels below $275 found at $260, $230, and $200.

Litecoin Lags Behind as Ripple Spikes to New High

LTC/USD, 4-Hour Chart Analysis

Litecoin couldn’t manage to meaningfully leave behind the $140 resistance and its recent swing high despite the broad rally in the segment, its current relative weakness is a warning sign for bulls that the rally might be close to its end. For now, LTC is still on a short-term buy single in our trend model, even though the long-term signal remains bearish.

Traders could hold on their positions here, although today rally in the segment has the potential to turn into a blow-off top, which would severely hurt the relatively weak Litecoin. The rally could still continue in the coin’s market, with the initial target being at $150 and with another strong zone at $180. From a broader perspective, the outlook remains bearish, with support level still found near $125, $110, and $100, with a strong long-term zone below that between $85 and $90.

XRP/USD, 4-Hour Chart Analysis

Ripple finally joined the rally today, spiking above the $0.46 level and its prior swing high thanks to the segment-wide rally. Despite today’s surge, the break-out is still suspicious, due to the coin’s persistent relative weakness, and the odds of yet another failed move are high. XRP turned lower off the resistance zone near the $0.51 price level, and until we see signs of bullish follow-through, we still don’t recommend entering the coin’s market.

That said, our trend model is on a short-term buy single in the wake of today’s but the long-term signal is still clearly bearish. Above the initial resistance near $0.51, another strong zone is ahead near $0.54, while support zones below $0.42 found near $0.3750, $0.3550, and just above $0.33..

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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.

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.