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.