Crypto Update: Coins Consolidate on Thanksgiving Day After Wild Ride

Volatility declined substantially today in the cryptocurrency segment following three days of heavy trading, with top coins consolidation after the recent leg of the market-wide crash. US markets have been closed for Thanksgiving Day, and although traditional financial markets had an active day, especially in Europe, volumes in the crypto-segment were much lower than in the recent period.

While the bearish momentum faded away, the major coins couldn’t recover much of their recent losses, as selling pressure is still apparent in the market. That said, the market stabilized, and aside from the collapsing Bitcoin Cash, the majors and most of the smaller coins remained well above their spike lows from Tuesday.

The long-term picture is still overwhelmingly bearish in the segment, but short-term, a bottoming process could already be underway, and a larger bounce is likely in the coming week. Despite the possible bullish move, traders should only consider ultra-short-term positions with strict risk management, given the dominant bearish trend, and the lack of bullish leadership.

BTC/USD, 4-Hour Chart Analysis

Bitcoin continues to hover around the $4450-$4500 support zone, trying to form a short-term swing low after the crash, and although the most valuable coin failed to make cover significant ground, it managed to hold well above its spike low.

BCT is still oversold, despite the consolidation, and although a test of the lows is possible in the coming days, a larger bounce is likely. Primary resistance is ahead between $5000 and $5100, with further levels near $5350 and $5600, while primary support is still found between $4000 and $4050.

ETH/USD, 4-Hour Chart Analysis

Ethereum has been struggling to hold above the key $130 level today, and it’s showing relative weakness again, despite a brief period of stability. While the recent lows are safe for now, and a broad rally could carry to the coin up to the $150-$160 zone in the coming weeks, the bearish trend remains very strong, and traders and investors should only consider ultra-short-term positions before, at least a confirmed short-term change.

No Real Strength Among Altcoins Despite Ripple’s Stability

XRP/USDT, 4-Hour Chart Analysis

Ripple settled down in the key long-term $0.42-$0.46 zone, and although the coin is holding up well above its prior bear market low, it failed to show bullish momentum amid the broad consolidation. With that in mind, the short-term sell signal remains in place in our trend model, but XRP is clearly in the best technical position among the majors.

Below the lower boundary of the primary support zone, further levels are found near $0.375 and $0.355, while resistance is still ahead at $0.51, $0.54, and $0.57.

DASH/USD, 4-Hour Chart Analysis

Dash, which has been leading the way lower during the recent selloff, together with the likes of Litecoin and Ethereum Classic, has shown some early signs of strength during the bounce, rallying up to the $115 resistance after spiking below the $100 level.

That said, the steep broader downtrend is intact in the coin, and even though a move up to $130 is possible in the coming weeks following the selling panic, a longer bottoming process is likely before a sustained rally. Should Dash respect the $105 support level, and get back above $115, it would be a bullish short-term signal for the whole segment, but traders should only consider small, ultra-short-term positions to play the bounce.

Featured image from Shutterstock

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.