Crypto Update: BTC Joins Advance But Altcoin Rally Stalls

The major cryptocurrencies are having a mixed but mostly bearish day, so far, as even though BTC has been gaining ground in the past 24 hours, the majority of the altcoins are lower compared to yesterday’s highs. The best-performing top coin of Monday’s session, XRP is down by the most, falling back below the $0.21 price level, while LTC and ETH are holding up relatively well, and all of them are trading well below their prior post-crash lows.

With that, our trend model remains positive in most cases from a short-term perspective and while the long-term trends remain clearly bearish in the segment, bulls can still hope for a more durable counter-trend move. Traders could enter new short-term positions here, but strict risk-management rules should still be applied, as the bear market is still expected to resume.

BTC/USD, 4-Hour Chart Analysis

BTC recaptured the $7,600 and $7,800 price levels yesterday in late trading, and the coin is now very close to testing its broad declining trendline thank to the breakout. The coin triggered an upgrade in our trend model as well, and even a long-term trend change could be in the cards, even as most of the top coins are still well within their long-term trends.

BTC is now on a short-term buy signal in our trend model, while still being on a long-term sell signal, with support zones now found near $7,800, $7,600, $7,400, and $7,000, and with resistance ahead near $8,200, $8,400, and $8,650.

ETH/USD, 4-Hour Chart Analysis

ETH tested the $145 level today as e expected following yesterday’s breakout and it erased its December breakout thanks to the rally. That said, the broader downtrend remains clearly intact in the coin’s market, and its bear market is likely to continue after the counter-trend rally runs its course.

Our trend model is now on a short-term buy signal while still being on a long-term sell signal, with major support zones found near $135, $130, $120, and $100, and with resistance zones ahead near $145, and $160.

XRP Pulls Back in Volatile Trading While LTC Continues Higher

XRP/USD, 4-Hour Chart Analysis

XRP fell back below the $0.21 level after briefly topping $0.2250 yesterday following a trademark Ripple-spike that carried the coin to a 3-week high. The coin’s volatile pullback left the breakout and the short-term buy signal intact, even though XRP continues to be among the weakest majors from a long-term technical perspective.

XRP is on a short-term buy signal while still being on a long-term sell signal in our trend model, with support zones now found near $0.21, $0.20, $0.1930, and $0.1750, and with resistance zones ahead near $0.23 and $0.2475.

LTC/USD, 4-Hour Chart Analysis

LTC built up relative strength in the past 24 hours, together with BTC, and the coin hit a new swing high despite the early-day pullback. LTC remains well above the key long-term $44 level, and while it is still very weak from a long-term technical standpoint, it could be ready to extend the current counter-trend rally in the wake of the steep losses of the past few months.

LTC is now on a short-term buy signal while still being on a long-term sell signal in our trend model, with support zones now found near $44 and $38, and with resistance zones ahead near $51 and $56.

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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.