Crypto Update: Coins Continue To Consolidate As U.S. Stocks Roar To Record Highs

Even though risk assets had a great session across the globe in the aftermath of the ‘phase one’ trade deal between the U.S. and China, the major cryptocurrencies seemingly decoupled from the other alternative assets. The segment remained upbeat despite the recent lofty gains among the top coins and the smaller digital currencies, and although the key short-term momentum indicators remain in overbought territory, the freshly formed uptrend is undoubtedly intact.

Our trend model remains mixed on both time-frames, but the decline in correlations between the majors is another positive sign for bulls. That is true, even as the broader downtrends are far from being 100% behind us, even in the case of the technically strong BTC, and the coming days could still bring a sobering decline.

BTC/USD, 4-Hour Chart Analysis

BTC continues to trade in a relatively narrow range after its encouraging breakout above its declining long-term trendline. While the coin is slightly stretched here, from a short-term momentum standpoint,  the uptrend remains intact. Even though a pullback could be ahead, bulls finally have the chance to celebrate a confirmed long-term trend change.

BTC is now on buy signals on all time-frames in our trend model, with support zones found near $8,600, $8,400, $8,200, and $7,800, and with resistance ahead near $9,200, $10,000.

ETH/USD, 4-Hour Chart Analysis

While ETH turned more volatile than BTC in the wake of yesterday’s breakout, it managed to hold up above the key long-term support level near $160. The coin remains clearly overbought from a short-term momentum perspective, despite today’s sideways drift. While further gains are possible here, odds favor a pullback, especially given the coin’s bearish long-term technicals.

Our trend model is now on sell signals on both time-frames, with major support zones found near $160, $145, $135, and $130, and with resistance zones ahead between $180 and $185 and near $200.

XRP Loses Ground As LTC Continues To Impress

XRP/USD, 4-Hour Chart Analysis

XRP dipped well below the $0.23 level during today’s altcoin pullback, but it managed to bounce back above that crucial long-term level in later trading. Even though the coin is still very weak from a long-term perspective and its declining trendline in no danger, short-term gains still seem likely, and bulls could still enter new positions here.

XRP is on a short-term buy signal while still being on a long-term sell signal in our trend model, with support zones now found near $0.23, $0.21, $0.20, and $0.1930 and with resistance zones ahead near $0.2475, and $0.26.

LTC/USD, 4-Hour Chart Analysis

LTC is still severely overbought, from a short-term perspective, and we continue to expect a deeper pullback, the recently leading coin showed encouraging strength today. The coin recovered above the long-term support zone that has been in focus for days no, and although its recent swing high is still towering ahead of it, new highs could be ahead following the current consolidation period.

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

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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.