Crypto Update: Buy Signals Pop Up As Coins Surge Higher
The crypto segment continued to impress yesterday and after showing relative strength amid the global turmoil the major coins built up substantial bullish momentum. The BTC-led rally boosted coins across the board, although with notable divergences, and most of the majors broke out of their short-term trading ranges, triggering buy short-term buy signals. Most of the top coins remain below their declining long-term trendline, though and the segment is still not of out
Our trend model switched to bullish on the short-term time-frames for around half of the majors, but due to the recent crash, rallies should be treated as short-covering moves and traders should only enter smaller, speculative short-term positions. A retest of the lows or even new lows are still possible here, but should the coins from a higher low in the coming period, a great buying opportunity could present itself.
BTC/USD, 4-Hour Chart Analysis
BTC was the clear leader of yesterday’s breakout from the short-term consolidation ranges, and the most valuable coin took out several strong resistance levels during the short-covering spike. The coin briefly recaptured its previously dominant long-term trendline as well, but given the high level of uncertainty across asset classes, we expect further volatile moves in BTC’s market. Most traders should wait for a higher swing low before reentering the market, but investors with long-term strategies could still add to their holding on the short-term pullbacks.
BTC is now on a short-term buy signal while being on a long-term sell signal in our trend model, with support now found near $6500,, between $6000 and $6100 and near $5850, while resistance is ahead near $6,750 and $7,000.
ETH/USD, 4-Hour Chart Analysis
Even though ETH is still showing relative weakness from a technical perspective, it joined BTC’s rally attempt and spiked above the key $145 resistance level. The coin also triggered a short-term buy signal today, but short-term positions remain risky here, and traders should wait for a confirmed trend change before re-entering ETH’s market.
ETH is now on a short-term buy signal while being on a long-term sell signal in our trend model, with major support zones found between $130 and $135, near $120, and between $95 and $100, and with resistance zones ahead near $145 and $160.
XRP Showing Weakness Again As LTC Tops Long-Term Trendline
XRP/USD, 4-Hour Chart Analysis
XRP also gained ground together with the broader market, but it fell short of a renewed short-term buy signal, showing relative weakness again. That said, the coin broke out above its steeply declining short term trend line while also recapturing the $0.1650 level, but it still faces stiff resistance near $0.1750, and its declining long-term trendline is well above its current price range.
Our trend model is still on sell signals on both time-frames, with support zones found near $0.1650, $0.15, $0.13 and $0.11, and with resistance zones ahead near $0.1750, $0.19, and $0.20.
LTC/USD, 4-Hour Chart Analysis
LTC broke out above its previously dominant long-term trendline today, while also triggering a short-term buy single as it recaptured the key $38 resistance after leaving behind the $34.50 level. The coin’s continued technical strength is a huge plus for the whole segment but we need more evidence before concluding that the selloff is over and short-term traders should remain cautious as further wild swings could be ahead.
LTC on a short-term buy signal while being on a long-term sell signal in our trend model, with support zones found near $38, $34.50, $30, and $26.50, and with resistance zones ahead $44, $51, 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.