Crypto Update: Coins Consolidate Following Weekend Rally

The major cryptocurrencies have been trading in a relatively narrow range in the past 24 hours, with a slight bearish bias. The segment remains bullish even from a short-term perspective, despite the pullback. While the short-term momentum indicators are slightly overbought in the case of the majority of the top coins, and a short-term correction could be ahead, the recent technical improvements could lead to a persistent bullish trend.

Our trend model is now overwhelmingly bullish on both time-frames, but the long-term trend change is far from being safe in most cases. With that in mind, traders should still apply strict risk management rules, and avoid entering outsized short-term positions. For now, even the smaller coins remain upbeat, and that and strength of the market-leading coins are encouraging signs for bulls despite the downside risks.

BTC/USD, 4-Hour Chart Analysis

BTC continues to show short-term relative weakness, still trading in a narrow consolidation range just above its prior swing high and the $9,200 support level. The coin is in a clearly bullish short-term trend, while also holding up well above its previously dominant declining long-term trendline. A deeper pullback could be ahead, but BTC already cleared the overbought short-term momentum readings, so the rally could soon resume.

BTC is still on buy signals on both time-frames in our trend model, with support zones now found near $9,200, $8,600, and $8,400, and with resistance ahead near $10,000, and $11,300.

ETH/USD, 4-Hour Chart Analysis

ETH continues to trade above its recently broken declining long-term trendline and the key long-term $180-$185 support/resistance zone following its weekend breakout. The coin is consolidating in a narrow range following the rally, and it faces strong resistance near $200. That said, its technical position improved significantly last week, and the long-term trend change could soon be confirmed even though a short-term pullback is likely here.

Our trend model is on a neutral short-term signal while being on a long-term buy signal, with major support zones found between $180 and $185, and near $160 and $145, and with resistance zones ahead near $200 and $230.

XRP Fails To Break Out As Litecoin Consolidates

XRP/USD, 4-Hour Chart Analysis

While XRP continues to trade above the $0.2475 support/resistance level, near its prior swing high, but it remains relatively weak from a technical perspective. The coin is also stuck below its broad declining trendline, and while its short-term uptrend is clearly intact, it remains very far from a long-term trend change.

XRP is still now a short-term buy signal and a long-term sell signal in our trend model, with support zones now found near $0.2475, $0.23, $0.21, and $0.20, and with resistance zones ahead near $0.26, and $0.28.

LTC/USD, 4-Hour Chart Analysis

LTC tested the $72.5-$75 resistance zone several times in the past 48 hours, but as the coin is still overbought from a short-term momentum perspective, a decisive breakout seems unlikely, for now. We expect a deeper pullback or at least a choppy consolidation period in LTC’s market, but its long-term trend change seems safe, and it remains relatively strong compared to its peers.

LTC is on a neutral short-term signal in our trend model, while being on a long-term buy signal with support zones now found near and $64, $56, $51, and $44, and with resistance zones ahead between $72.50 and $75 and near $85.

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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.