Crypto Update: Coins Avoid Breakdown Again But Bears Remain In Control
The rather choppy consolidation continues in the markets of the major cryptocurrencies, and today, the top altcoins survived a scary dip, without the threat of another technical breakdown. As volatile trading continued in traditional assets, the segment saw an increase in trading activity, with especially the recently strong ETH’s dip affecting the broader market.
LTC also experienced a brief but volatile sell-off, and while BTC and XRP were slightly more stable throughout the session, they failed to capitalize on that, finishing the session with losses and below key technical levels. Despite the late-day bounce, the coins remain in clearly bearish technical patterns, and odds continue to favor another leg lower in the ongoing downtrend, especially since the smaller coins also remain under selling pressure.
BTC/USD, 4-Hour Chart Analysis
BTC remains relatively weak from a technical perspective, and the coin dipped below the key $8,200 level today after failing to recapture the $8,400 level in a durable fashion. While the coin managed to bounce back above the former support/resistance level, it remains well below $8,400, and as the short-term momentum indicators are now in neutral territory, a move below last week’s low could soon be ahead.
The coin is still on clear sell signals on both time-frames in our trend model, with further support zones found near $7,600 and $7,800, and with resistance zones now ahead near $8,400, $9,200, and $10,000.
ETH/USD, 4-Hour Chart Analysis
ETH dropped below the lower boundary of its short-term consolidation pattern today, despite being the strongest major in recent days, and the coin remains clearly below the key $180-$185 resistance zone. While a major sell-off has been avoided, so far, the coin remains in a downtrend, and another test of the $160 support is still likely in the coming weeks.
Our trend model is still on sell signals on both time-frames, with support zones now found near $160, and $145, and with resistance zones ahead between $180 and $185 and near $200 and $230.
Ripple Drifts Lower As Litecoin Fights For $56 Level
XRP/USD, 4-Hour Chart Analysis
XRP also dipped lower together with the other majors, before bouncing back in late trading, but volatility remained lower in the coin’s market throughout the day. Despite its relative stability, XRP couldn’t get back above the $0.2475 level, and the coin remains weak from a technical perspective and now, it almost gave back all of its Monday spike.
The coin is still on sell signals on both time-frames in our trend model, and new lows remain very likely in the coming weeks, with support zones found near $0.23, and $0.21, and with resistance still zones ahead near $0.26, and $0.28.
LTC/USD, 4-Hour Chart Analysis
LTC spiked below $54 today in U.S. trading, after being glued to the $56 price level for two days, but the relatively weak coin managed to recover to its prior range in late trading. While today’s failed breakdown could mean that the current consolidation phase will continue, downside risks remain high, and traders should avoid entering new positions here.
LTC remains on sell signals on both time-frames in our trend model, with further resistance zones above $56 ahead near $64 and $75, and with major support zones now found near $51 and $44.
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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.