Crypto Update: Coins Continue To Bleed, But Bulls Still In Control

The major cryptocurrencies continue to trade within their corrective short-term pattern, and while this week, we are having the second bearish session in a row, the underlying bullish trends are not in danger. The top coins have all been drifting lower today in Asian trading, but even though some of them violated important support levels, the technical damage remains limited. That said, there is no strong indication that the correction is about to end, and caution is still warranted, as sentiment remains overly bullish.

Our trend model continues to confirm the duality between the time-frames, with the short-term signals still being bearish while the long-term signals being encouraging for bulls. The low level of volatility in the segment is another positive sign from a broader perspective, especially given yesterday’s panic in traditional financial markets, but the correction could still continue in light of the extent of the preceding rally.

BTC/USD, 4-Hour Chart Analysis

BTC got closer to its recent swing low over the past 24 hours, as it failed to regain its relative strength amid the global risk selloff. The coin is well below the key long-term $10,000 level, while also being stuck in its corrective short-term pattern. Despite the weak short-term technicals, BTC remains in an upbeat long-term formation and the freshly formed long-term trend is still in no danger.

BTC is on a short-term sell signal while still being on a long-term buy signal in our trend model, with support zones now found near $9,200, $8,600, and $8,400, and with resistance ahead near $10,000, $11,300, and $13,000.

ETH/USD, 4-Hour Chart Analysis

ETH remains very strong from a short-term technical perspective, holding up near the crucial $260 level and staying close to its prior swing high. The late leader of the strong rally of the past months is still expected to resume the long-term trend following the current corrective phase, but the coming days and weeks could still see spikes in volatility as the overly bullish sentiment is reset.

Our trend model is still on a short-term sell signal while being on a long-term buy signal, with major support zones found near $260, $230, $200, and between $180 and $185, and with resistance zones ahead near $275, $290, and $300.

XRP Breaks Another Trendline As LTC Drops Below $75

XRP/USD, 4-Hour Chart Analysis

XRP continues to show worrying signs for bulls, dropping below the broadest trendline that developed during the recent rally overnight. The coin is also threatening to move below $0.26 after failing at $0.28, and it remains the weakest among the majors, being more than 20% off its recent swing high, so traders shouldn’t enter new positions here.

Our trend model is on a short-term sell signal while still being on a long-term buy signal with support zones found near $0.26, $0.2475, and $0.23, and with resistance zones ahead near $0.28, $0.30 $0.32, $0.33, and $0.3550.

LTC/USD, 4-Hour Chart Analysis

While LTC drifted back below $75 in the past 24 hours, it remains above the lower boundary of the key long-term support/resistance zone. The coin is also relatively strong from a short-term technical perspective and it looks ready to lead the way higher out of the correction. That said, the consolidation is still likely to continue and even new correction lows can’t be ruled out here.

LTC is on a short-term sell signal while still being on a long-term buy signal in our trend model, with support zones now found $72.50, $64, $56, and $51, and with resistance zones ahead near $75, $85, and $90.

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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.