Crypto Update: Bitcoin Triggers Sell Signal As Selling Pressure Mounts

While the major cryptocurrencies are little changed today following two bearish sessions, the confirmed technical breakdown of BTC has been weighing on investor sentiment. The most valuable coin exited its consolidation range yesterday, and although the likes of LTC and ETH are holding up relatively well in the face of the selling pressure, XRP is also very weak, and overall, the segment continues ot be dominated by sellers.

That’s especially true on the long-term time-frame, as from a short-term perspective the majors could still resume the counter-trend move, even in light of the current broad weakness. Traders should remain defensive here, as we still don’t have a clear leadership to lift the segment, but investors should monitor ETR and LTC for signs of accumulation, which could give a boost to the market.

BTC/USD, 4-Hour Chart Analysis

BTC has been relatively weak in recent days, and it continued to weigh on the broader market in the past 24 hours plunging clearly below its short-term consolidation range. With that, the coin triggered a short-term sell signal in our trend model, and it’s also on the verge of re-entering its prior range, which could lead to a re-test of its October low.

The coin is still on a long-term sell signal in our trend model, with support zones now found near $8,650, $8,400, and $8,200, and with resistance ahead near $9,200 and $10,000.

ETH/USD, 4-Hour Chart Analysis

ETH is once again trading in the key $180-$185 support/resistance zone, and it managed to bounce back without reaching the lower end of the range despite yesterday’s broad sell-off. The coin’s short-term stability could be the first sign of a short-term trend change, but odds continue to favor a bearish continuation, so traders should still stay away from entering new positions.

Our trend model is still on sell signals on both time-frames, with further support zones now found near $160, $145, and $130, and with resistance zones ahead near $200 and $230.

XRP Remains Weak As LTC Keep s Bulls’ Hopes Alive

XRP/USD, 4-Hour Chart Analysis

Although XRP managed to remain in a safe distance from the key $0.26 level and it even tested the $0.28 resistance today, it remains very weak compared to the other top altcoins. A sustained recovery above $0.28 could still revive the counter-trend rally, but given the long-term weakness of the coin, traders should remain suspicious of XRP’s rally attempts.

XRP is still on sell signals on both time-frames in our trend model, with support zones now found near $0.26, and $0.2475, and with resistance zones ahead near $0.28, $0.30, and $0.32.

LTC/USD, 4-Hour Chart Analysis

LTC managed to hold up above its prior trading range and recapture the $60 price level but it failed to make meaningful technical progress despite its short-term relative strength. The coin is still well below the $64 level and its recent swing high, and in light of the long-term setup, the bear market is still likely to resume.

LTC remains on sell signals on both time-frames in our trend model, with further resistance zones found near $56, $51, and $44 and with the next major resistance zone ahead near $75.

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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.