Crypto Update: BTC Breaks Above $10,000

The major cryptocurrencies continue to trade in bullish short-term trends, and while some of them are stretched in the wake of their recent lofty gains, other coins took over the leadership of the rally. BTC has been leading the way higher today, hitting fresh multi-month highs yet again and it managed to move above the key $10,000 price level at the first try. The other majors also remained upbeat but little technical progress has been made among the top altcoins, due to the weakening bullish momentum.

Our trend model is still dominantly bullish on both time-frames, but the most overbought altcoins seem too risky with regards to short-term positions. On a positive note, the long-term breakouts are intact in the markets of most of the majors, and while a coming correction would be the first major test of the trend shift, the charts continue to look bullish.

BTC/USD, 4-Hour Chart Analysis

After showing relative weakness during the recent altcoin move, BTC showed impressive technical strength, moving straight past through the key long-term $10,000 level in the weekend environment. The coin is still not severely overbought from a short-term momentum perspective so it could test the next $11,300 level before the pullback. That said, this is not the best time to enter new short-temr positions, even if the long-term trend shift seems safe.

BTC is still on buy signals on both time-frames in our trend model, with support zones now found near $10,000, $9,200, $8,600, and $8,400, and with resistance ahead near $11,300 and $13,000.

ETH/USD, 4-Hour Chart Analysis

ETH turned choppy over the weekend, struggling to gain further ground and test the $230 level, but holding on above even the steepest short-term trendline. While the short-term momentum indicators are severely overbought and a deeper pullback could soon start, the rally could still be extended thanks to the bullish sentiment. As better entry points are likely ahead in the coming weeks, traders shouldn’t enter new positions here.

Our trend model now on a neutral short-term signal while still being on a long-term buy signal, with major support zones found near $200, between $180 and $185, and near $160, and with resistance zones ahead near $230 and $260.

XRP Fights for $0.28, As LTC Drifts Sideways

XRP/USD, 4-Hour Chart Analysis

XRP had a very choppy weekend following Friday’s sudden pullback, but despite the hectic trading the coin managed to settle down above the key $0.28price level. XRP is still trading in an advancing short-term trend, and even it also continues to be the weakest major from a broader technical standpoint, it could extend its gains thanks to the bullish sentiment in the segment.

Our trend model is on a neutral short-term signal while still being on a long-term buy signal, with support zones found near $0.26 and $0.2475 and with resistance zones ahead near $0.28, and $0.30.

LTC/USD, 4-Hour Chart Analysis

While LTC failed to extend and solidify yesterday’s breakout amid BTC’s rally, it held up above the $75 level, keeping the breakout alive. The bullish momentum is still weak in LTC’s market, but the short-term uptrend is intact and a test of the $85 level is in the cards, as the short-term momentum indicators are not severely overbought.

LTC on buy signals on both time-frames in our trend model with support zones now found near $75, $64, $56, and $51, and with resistance zones ahead near $85 and $90.

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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.