Crypto Update: Coins Bounce Back Following Manic Monday

The COVID-19 crisis continues to deepen in Europe, with a lot of countries now under full lockdown, and extreme market conditions are still present in financial markets. Compared to yesterday’s unprecedented volatility, most asset classes are calmer today and that’s true to the cryptocurrency segment as well, where the major coins are sporting small gains after avoiding a technical breakdown and even a retest of their crash lows yesterday.

The technical setups remain bearish despite the bounce, and our trend model is also on sell signals on both time-frames. That said, the price action of the past 24 hours gives a glimmer of hope to bulls that last week’s crash lows will be durable, even in the case of a still possible retest. Traders should still not enter new trades based on this as volatility could spike higher anytime, and downside risks remain substantial despite the pause in forced liquidations.

BTC/USD, 4-Hour Chart Analysis

BTC has been showing relative strength today, recovering above both the $5,050 and $5,350 resistance levels, suggesting that the pressure caused by the global forced liquidations eased somewhat. This doesn’t mean that the downtrend is over, but the odds of a sustained bottom increased and long-term investors could consider adding to their holdings here.

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

ETH/USD, 4-Hour Chart Analysis

ETH remains relatively weak compared to its closest peers, but it still managed to test the $120 resistance level in early trading. The coin is in a safe distance of its recent crash low, but should volatility return in the coming days, it could quickly head for a retest and lead the way lower for the segment due to its weakness.

ETH is on sell signals on both time-frames in our trend model, with major support zones found near 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 And LTC Top Key Levels Amid Bounce

XRP/USD, 4-Hour Chart Analysis

XRP recovered briefly above $0.15 today after bottoming out near $0.13 during yesterday’s plunge, and the coin is slowly working its way through the oversold short-term momentum readings. While, from a long-term perspective, XRP is still relatively weak, it might have formed a sustained bear market low, and in this case, it should start showing further signs of relative strength in the coming weeks.

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 is trading right at the key $34.50 support/resistance level in the wake of today’s early rally, and although it dropped below $30 yesterday, it could move above its steeply declining short-term trendline today. The coin is still not out of the woods, though, as it continues to trade below its previously dominant long-term trendline, and the global turmoil could lead to further volatile swings and even a new low.

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.