Crypto Update: Coins Bounce Off Support In Quiet Trading

The technical setup is little changed in the cryptocurrency segment, as the majors are still trading within their short-term consolidation patterns that developed in the wake of last week’s short-covering surge. The key support levels that have been in focus in recent days continue to hold up even the relatively weak altcoins, but even though the counter-trend rally could still continue following the current quiet period, the broader picture remains weak.

With still no leadership present in the segment, bulls would need signs of broad strength before reentering the market even considering the few short-term buy signals that popped up thanks to the rally attempt. Downside risks remain prominent, and although, volatility is low now, should the initial support levels fall another surge in market activity could follow.

BTC/USD, 4-Hour Chart Analysis

BTC has been trading in a very narrow range today, amid the public holidays in Europe, with the $9,200 level still being in focus throughout the session. The coin held up above $9,000 despite yesterday’s weakness, but it failed to make meaningful progress, even though it continues to be on a short-term buy signal, making the next swing very important from a technical standpoint.

The coin is still on a long-term sell signal in our trend model, with further support zones found near $8,400, and $8,200, and with resistance ahead near $10,000.

ETH/USD, 4-Hour Chart Analysis

ETH has been testing the lower boundary of the key $180-$185 support/resistance zone yet again today, but the coin rebounded following the U.S. close getting back to the upper resistance level of the range. Despite the bounce, ETH remains relatively weak compared to BTC, and even though the counter-trend move could still resume, the outlook for the coin is clearly bearish from a long-term perspective.

Our trend model is still on sell signals on both time-frames, with further support zones now found near $160, $145, and $130, and with resistance zones ahead near $200 and $230.

XRP And LTC Remain Under Pressure

XRP/USD, 4-Hour Chart Analysis

XRP has also been relatively weak for the better part of the session, but it bounced back in late trading together with the broader market. XRP is still stuck below $0.30 but it continues to hold up above its initial support zone. With the bearish long-term setup in mind, the broader downtrend is still likely to resume, but the counter-trend move could still extend above $0.30.

XRP is still on sell signals on both time-frames in our trend model, with support zones now found near $0.28, $0.26, and $0.2475, and with resistance zones ahead near $0.30, and $0.32.

LTC/USD, 4-Hour Chart Analysis

LTC traded in a narrow range today, in line with the market-wide trends, and it also managed to hold up above the key $56 support. Despite today’s stability, the coin remains among the weakest majors, and it’s still likely to lead the way lower once the counter-trend move runs its course.

LTC remains on sell signals on both time-frames in our trend model, with further support zones now found near $51 and $44 and with the next major resistance zone ahead near $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.

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.