Crypto Update: BTC Hits 11-Week High As Altcoins Eye Breakout
The major cryptocurrencies continue to trade in bullish short-term tends and BTC is still the most important leader of the rally. The most valuable coin’s strength is a huge plus for bulls here, and it not just hit a new short-term swing high today, but cemented its long-term trend change. While no other top coin followed BTC to a new high in a sustained fashion, the leading smaller coins also remained upbeat.
Our trend model continues to be mixed with regards to the long-term time-frame while being overwhelmingly bullish on the short-term time-frame, and several coins are on the verge of long-term trend changes. Despite the positive developments, we still can’t rule out a swift reversal and traders should remain cautious and stick to strict risk management rules.
BTC/USD, 4-Hour Chart Analysis
BTC topped the $9,400 level for the first time since November confirmed the first swing low in a new broad uptrend and cementing the breakout from the previously dominant declining trend channel. While a sharp reversal still not off the table, BTC’s recent price action is encouraging and traders could hold on to their positions here despite the slightly overbought short-term momentum readings.
BTC is still on buy signals on both time-frames in our trend model, with support zones now found near $9,200, $8,600, and $8,400, and with resistance ahead near $10,000, and $11,300.
ETH/USD, 4-Hour Chart Analysis
ETH briefly topped its recent short-term swing high today, getting very close to the failed to the key $180-$185 resistance zone in the process. The coin remains relatively strong from a short-term perspective, and it’s now closing in on its dominant long-term trendline as well. The coin still has very strong resistance ahead of it, but the segment-wide developments could help ETH.
Our trend model is on a short-term buy signal, while still being on a long-term sell signal, with major support zones found near $160, $145, $135, and $130, and with resistance zones ahead between $180 and $185 and near $200.
XRP Fails To Impress As LTC Remains Strong
XRP/USD, 4-Hour Chart Analysis
XRP remains the clear laggard among the top digital currencies, and even though it got close to a short-term buy signal, it remains under pressure, especially from a long-term perspective. The coin is still close to the$0.23 support/resistance level while being very far from its declining long-term trendline, even in the wake of the segment-wide rally.
XRP is still on sell signals on both time-frames in our trend model, with support zones now found near $0.23, $0.21, and $0.20, and with resistance zones ahead near $0.2475, and $0.26.
LTC/USD, 4-Hour Chart Analysis
LTC fell short of its prior swing high, losing some of its relative strength compared to the other major altcoins, but from a long-term perspective, it’s close to a confirmed trend change. That said, its previously dominant declining trendline is not far below its current price zone, so a reversal is a bit more likely than in the case of BTC.
LTC is now on buy signals on both time-frames in our trend model, with support zones now found near and $56, $51, and $44, and with resistance zones ahead near $64 and between $72.50 and $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.