Crypto Update: BTC Hits New Rally High but Altcoins Fail to Impress
The major cryptocurrencies all traded higher today in early trading, with, yet again, Bitcoin leading the way higher, but besides the market-leading coin, none of the top coins managed to register significant technical improvements. BTC got close to the $11,000 price level, for the first time since mid-August, but the likes of ETH, XRP, and XRP even failed to test this week’s bounce-highs, despite the broad rally attempt.
Even though most of the coins drifted out of their dominant declining trend channels, thanks to the ongoing consolidation, the selling pressure is still imminent in the markets of the major altcoins. We could still be in for a more sustained correction in the wake of the steep losses of the recent months, but besides BTC, no other coin looks ready to resume the spring rally, and our trend model remains on sell signals on both time-frames in most cases.
BTC/USD, 4-Hour Chart Analysis
BTC broke out of its bullish short-term flag consolidation pattern that we pointed out yesterday, and it managed to score a new rally high thanks to the slight bullish shift in investors sentiment. The coin is still in the most promising technical setup among the top coins, and it might be ready to test the key long-term $11,300 level in the coming days.
Our trend model is still on a short-term buy signal while being on a long-term sell signal, and the coin sis still trading within a broad triangle consolidation pattern. Below the initial $10,000 level, support is found near $9.200, $8,400, and $8,200, while resistance zones are still ahead near $11,300, and $13,000.
ETH/USD, 4-Hour Chart Analysis
ETH remains stuck below $180 despite today’s weak bounce, and it’s still trading in a bearish short-term consolidation pattern. The coin moved above the declining short-term trendline but remains under clear selling pressure, and another downswing is still likely ahead.
ETH is still on sell signals on both time-frames in our trend model, with support zones found near $160, and $145, and with strong resistance zones ahead in the $180-$185 zone, and near $200 and $230.
Ripple and Litecoin Remain Weak Despite Bounce
XRP/USD, 4-Hour Chart Analysis
XRP continues to hover around the $0.26 level, still trading in its short-term consolidation pattern. The coin remains relatively weak, even compared to the generally bearish altcoins, and we continue to expect another downswing.
XRP remains on sell signals on both time-frames in our trend model, with support zones found near $0.2475 and $0.23, and with strong resistance zones ahead near $0.26, $0.28, $0.30, and $0.32.
LTC/USD, 4-Hour Chart Analysis
Litecoin only bounced slightly higher off its overnight lows, and similarly to Ripple it continues to show technical weakness, and it’s still likely to lead the lower in the coming weeks. The short-term dowtrend remains intact, and the recent breakdown level seems out of reach.
Our trend model remains on sell signals on both time frames, with support levels found near $64 and $56, while resistance zones are still ahead near $75, between $85 and $90, and near $100.
Featured image from Shutterstock
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.