Crypto Update: Coin Plunge Again As Global Turmoil Resumes

Large-scale liquidations resumed today across asset classes, as the COVIS-19 crisis continues to worsen in Europe and America, threatening the global financial system with a major dislocation. Volatility spiked higher yet again, and the top coins are approaching last week’s panic lows. On a positive note, the panic lows are not in immediate danger, and a successful retest could set the stage for a more sustained rally, should the virus-related uncertainty decline somewhat.

Our trend model remains bearish on both time-frames and regarding all of the majors. While the top coins are all still severely oversold from a short-term momentum perspective, short-term trading remains very risk due to the extreme market conditions, the forced liquidations, and the unprecedented level of volatility across asset classes.

BTC/USD, 4-Hour Chart Analysis

BTC dipped as low as the $4,400 support level today in European trading, but it remained well clear of its crash low, despite the crash in risk assets. The coin’s market is still highly volatile, with liquidity being scarce, but should it hold above its prior low, the whole segment could get an important technical boost in the face of the ongoing steep downtrend.

BTC is on sell signals on both time-frames in our trend model, with support now found, $4,400, and $3,850, and with resistance zones ahead near $5,050.  $5350, $5850, between $6,000 and $6,100, and near $6,500 and $6,750.

ETH/USD, 4-Hour Chart Analysis

ETH already tested the $100 level today, showing continued technical weakness amid the segment-wide selloff.  The coin held up above its prior low, but without a material improvement in market conditions, it’s unlikely to maintain its current levels and, at least a marginal new lows seems likely this week, even if a sustained bottom might be very close.

ETH is on sell signals on both time-frames in our trend model, with major support zones found near $120 and between $95 and $100 and between $73 and $75, and with resistance zones ahead near $120, between $130 and $135 and near $145 and $160.

XRP  Fails AT $0.15 As LTC Violates $34.50

XRP/USD, 4-Hour Chart Analysis

XRP is once again trading below the key $0.15 level due to today’s broad selloff, but the coin’s market is relatively calm. The coin has been closely following the market-wide trends after being relatively weak for an extended period, and it could be in the process of forming a sustained bottom. That said, traders should still stay away from entering new positions and wait for clear signs of technical improvements.

Our trend model is still on sell signals on both time-frames, with support zones found near $0.13 and $0.11, and with resistance zones ahead near $0.15, $0.1650, $0.1750, $0.19, and $0.20.

LTC/USD, 4-Hour Chart Analysis

LTC dipped briefly below the $30 level before the U.S. open, leaving its prior short-term trading range overnight by violating the $34.50 support level. The coin couldn’t capitalize on its recent relative stability during today’s highly-correlated plunge, but traders should be looking for clues that confirm LTC’s resilience, as those could be vital for the outlook for the whole segment.

LTC is still on sell signals on both time-frames in our trend model, with support zones found near $30, and $26.50, and with resistance zones ahead near $34.50, $38, $44, and $51.

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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.