Crypto Update: Bulls Fight For Control As Support Levels Remain In Focus

The cryptocurrency segment continues to be controlled by bulls, at least with regards to the short-term time-frame, despite Sunday’s pullback and today’s mixed session. The top coins all cleared their overbought short-term momentum readings thanks to the dip, and they are all holding up above or near their initial support levels. That said, today’s bounce lacked bullish momentum and with the key support levels being very close, we still can’t confirm that the pullback is over.

The probability of a sharp reversal and a resumption of the broader downtrend in the segment are still on the table, even in light of the recent trend breaks in several key coins’ markets. Our trend model remains bearish from due to the lack of a short-term swing low, even though only BTC broke its short-term trendline of the top coins. The long-term picture is still fragile, so traders should continue to apply strict risk management rules.

BTC/USD, 4-Hour Chart Analysis

BTC continues to trade in the close vicinity of the $8,600 support level despite the several brief spikes lower, but the most valuable coin remains slightly weaker, technically speaking than its closest peers. The coin is clearly stuck below its rising short-term trendline, and traders should avoid entering new positions here until we see a confirmed swing low.

BTC is on a short-term sell signal and long-term buy signal in our trend model, with support zones found near $8,600, $8,400, $8,200, and $7,800, and with resistance ahead near $9,200, $10,000.

ETH/USD, 4-Hour Chart Analysis

ETH remains well above its respective short-term trendline while also being north of the key long-term support zone near $160, but it failed to approach its recent swing high today. The coin is trading well shy of its dominant long-term trendline, but bulls still can hope for a breakout, as the short-term uptrend is intact among the top altcoins.

Our trend model is now on sell signals on both time-frames, with major support zones found near $160, $145, $135, and $130, and with resistance zones ahead between $180 and $185 and near $200.

XRP Threatens With Trendline Break As LTC Fights For $56

XRP/USD, 4-Hour Chart Analysis

XRP remains in a precarious technical position, trading just above the $0.23 level and its short-term trendline. The coin’s long-term weakness continues to warrant caution here, despite today’s stability, but the short-term trendline remains in place. The segment-wide rally could propel XRP to a new short-term swing high, but a long-term trend change is still far away.

XRP is on sell signals on both time-frames in our trend model, with support zones found near $0.23, $0.21, $0.20, and $0.1930 and with resistance zones ahead near $0.2475, and $0.26.

LTC/USD, 4-Hour Chart Analysis

LTC has been showing early signs of weakness today, but as it managed to hold up near the key support zone that has been in focus this week, the strong short-term uptrend is clearly intact. The coin’s stability is a positive sign for the segment, and while further short-term losses are possible, odds favor the continuation of the trend, even considering LTC’s vulnerable long-term technicals.

LTC is on a short-term sell signal and a long-term buy signal in our trend model, with support zones now found near $56 and $51, 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.

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.