Crypto Update: Coins Drift Lower As Late-Week Bounce Runs Out Of Steam

The major cryptocurrencies are slightly below their highs from yesterday as they have been edging lower today in quiet trading. BTC’s relative strength continues to fuel the hopes of bulls, even though the major altcoins remain weak, technically speaking. The top coins are still not far above their lows from last week, and the broad downtrend in the segment is also clearly intact, despite the rally attempt and the short-term strength of BTC.

Our trend model remains on sell signals on both time-frames for the overwhelming majority of even the smaller coins, and while the counter-trend move, or at least the consolidation could still continue, downside risks remain high here. Traders should wait for a clear short-term trend change before entering new positions, as the broad weakness in the market still warrants caution.

BTC/USD, 4-Hour Chart Analysis

BTC continued to show relative strength in the past 24 hours, moving above its initial resistance zone near $7,400 and briefly topping even the $7,600 level as well. The coin is still in its post-crash consolidation range and while the coming weeks will still likely bring another bearish swing, the coin could extend its counter-trend move before that.

The coin is still on sell signals on both time-frames in our trend model, with support zones now found near $7,400, $7,000, $6,750, and $6500, and with resistance ahead near $7,600, $7,800, and $8,200.

ETH/USD, 4-Hour Chart Analysis

ETH edged higher together with the broader market, but while the coin is still holing up above the key long-term $145, it remains relatively weak compared to BTC. The prior lows are not in immediate danger, though, but should volatility return, the $10 level could soon be tested, as the long-term setup is still clearly bearish.

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

XRP Remains Upbeat As LTC Edges Higher

XRP/USD, 4-Hour Chart Analysis

XRP continues to show short-term strength after yesterday’s rally attempt and the coin managed to move above its steeply declining short-term trendline in the past 24 hours. XRP is still weakest major for a long-term technical perspective but a sustained move above $0.23 could trigger a short-term buy signal, as a more significant counter-trend rally is possible in the wake of the coin’s horrible November.

XRP is still on sell signals on both time-frames in our trend model, with support zones found near $0.21 and $0.20, and with resistance zones ahead near $0.23, $0.2475, $0.26, and $0.28.

LTC/USD, 4-Hour Chart Analysis

While LTC also climbed higher yesterday, it remains the weakest among the top coins from a short-term technical perspective, and it continues to trade very close to its prior low just below the key $44 level. The coin is very likely to lead the way lower in the case of another bearish swing in the segment, so even though a more sustained counter-trend rally is still possible traders should stay away from Litecoin here.

LTC remains on sell signals on both time-frames in our trend model, with support zones found near $44 and $38, and with resistance zones ahead near $51, $56, and $64.

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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.