Crypto Update: BTC Hits 3-Week Low As Pressure Mounts
The major cryptocurrencies continue to trade under strong selling pressure and they started out the weekend in a bearish fashion. The recently stronger BTC also started show signs of weakness in the past 24 hours and it hit its lowest level since late-November, testing the $7,000 level and edging ever closer to its prior swing low similarly top the top altcoins, which remain in very weak technical setups.
Our trend model continues to be overwhelmingly bearish on all time-frames, and as the test of the November lows can now happen any day, a new, possibly violent downswing could soon begin. The recent failed rally attempts all confirm the ongoing broad negative trend, and while a sharp reversal or a bear trap pattern could save bulls here, odds are heavily in favor of sellers.
BTC/USD, 4-Hour Chart Analysis
BTC turned higher off the $7,00 level after hitting a more than three-week low in early trading, and the coin is now dangerously close to its prior swing low, despite its recent relative stability. BTC is still trading in its post-crash consolidation range, but the broad downtrend is clearly intact in its market and the coin is likely gearing up for another leg lower.
BTC is still on sell signals on both time-frames in our trend model, with support zones found near $7,000, $6,750, and $6500, and with resistance ahead near $7,400, $7,600, $7,800, and $8,200.
ETH continues to show relative weakness and its bounce failed at the key long-term $145 support/resistance level, so a test of the November low looks very likely now. The coin is now stuck below its recent short-term trading range, and the price action would have to radically change in ETH’s market to avoid a bearish continuation.
Our trend model remains on sell signals on both time-frames, with the next major support zone found near $130, and with resistance zones now ahead near$145, $160, and between $180 and $185.
XRP And LTC Threatening With Key Breakdown
XRP/USD, 4-Hour Chart Analysis
XRP is getting closer and closer to its key $0.21 support level, and in light of the segment-wide weakness, a new bear market low could be ahead as soon as in the coming days. The selling pressure remains apparent in XRP’s, as it has been the case ever since the test of the $0.23 resistance, and traders should be prepared for sub $0.20 price levels in the coming weeks, barring a swift recovery.
XRP is still on sell signals on both time-frames in our trend model, with support zones found near $0.21 and $0.20, and with resistance zones ahead near $0.23, $0.2475, $0.26, and $0.28.
LTC/USD, 4-Hour Chart Analysis
LTC is back below the $44 support/resistance level after a brief rally attempt and it continues to be very close to its November swing low. The coin could violate the key zone this weekend, which would be another bearish omen for the struggling segment, as we still don’t see bullish leadership even among the smaller coins.
LTC remains on sell signals on both time-frames in our trend model, with support zones now found near $38 and $34.50, and with resistance zones ahead near $44, $51, $56, and $64.
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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.