Crypto Update: Choppy Consolidation Continues

The major cryptocurrencies had a very choppy 24 hours, as the post-crash consolidation continues in the segment across the board. The top coins are little changed compared to yesterday, trading in relatively narrow ranges ever since the failed breakdown and the subsequent rebound that kick-started the week. The bearish technical setups haven’t changed in the segment this week, and as the oversold short-term momentum readings have almost been cleared thanks to the rebound, downside risks are on the rise again.

The steeply declining short-term downtrends and the broad bearish trends remain intact in the segment, and while the consolidation might still continue in the coming days, sellers are still control of the market. Looking at the smaller coins, the picture is not pretty, and until we see signs of a broad-based rally attempt traders should stay away from entering new positions.

BTC/USD, 4-Hour Chart Analysis

BTC touched the recently developed short-term resistance zone near $7,400 after a news-induced spike lower overnight, but the coin remains inside its short-term trading range despite the wild swings. BTC is still showing technical weakness, and as the short-term momentum indicators are all but back to neutral, another bearish swing could be ahead in the coming week.

The coin is still on sell signals on both time-frames in our trend model, with support zones now found near $7,000, $6,750, and $6500, and with resistance ahead near $7,400, $7,600, $7,800, and $8,200.

ETH/USD, 4-Hour Chart Analysis

ETH has been showing weakness compared to the other majors in the past couple of days, and while continues to hold just above the $145 level, it remains very far off its recent breakdown level. The short-term downtrend is clearly intact and a test of the $130 level is likely ahead in the coming weeks following the current consolidation phase.

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

XRP Bounces Back But Altcoins Remain Under Pressure

XRP/USD, 4-Hour Chart Analysis

After showing for several days, XRP finally managed to, at least, match the performance of its most important peers in the past 24 hours. Despite the brief period stability, the coin is still very weak from a technical perspective, and further bear market lows are still very likely, especially in light of the broad weakness in the segment and the coin’s precarious long-term setup.

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 continues to trade just below its prior low from October, but it remains stuck in a very narrow short-term range above its recent low near the key long-term $44 level. The coin has been performing in line with the broader market in the past 24 hours, leaving the declining short-term trend intact. From a  long-term standpoint, the coin remains relatively weak, it is still likely to lead the way lower in the coming weeks.

LTC remains on sell signals on both time-frames in our trend model, with support zones now found near $44 and $38, and with resistance zones ahead near $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.

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.