Crypto Update: Coins Drift Lower But Market Remains Stable

The cryptocurrency segment had a two-faced session as even though the major coins gained ground in Asian trading, they are all trading in the red after the U.S. close. The early move gave hope to bulls that a short-term swing low has already formed, but bears took control of the market in the second half of the day. With that, the short-term consolidation ranges remain dominant, and we still can’t conclude that the short-term pullback is over.

A complete reversal is also still in the cards, despite the encouraging rally of the past weeks. That said, volatility remains low, the key support levels that stopped the pullback are still holding up, and apart from BTC, the top coins are still trading in short-term uptrends. Our trend model remains bearish due to the lack of a confirmed short-term swing low and the still mixed long-term setup, and while aggressive traders could open new positions here, strict risk management rules should still be applied.

BTC/USD, 4-Hour Chart Analysis

While BTC touched the $8,800 price level today, it quickly reversed its gains, returning to the close vicinity of the $8,600 level and reentering its relatively narrow trading range. The coin remains stuck below its short-term trendline but it also continues to show encouraging stability. For now, odds still favor another leg higher in the rising short-term trend, which would be a huge plus with regards to the possible long-term trend change.

BTC is on a short-term sell signal and long-term buy signal 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

ETH is trading in a safe distance of the crucial long-term $160 level and its rising short-term trendline, and while it’s still well shy of its recent swing high, its stability is a huge plus for the whole segment. The coming days could still see a major reversal, especially as the long-term downtrend is intact, so traders should be patient before jumping back into the market here.

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 And LTC Continue Choppy Consolidation

XRP/USD, 4-Hour Chart Analysis

XRP is holding up above $0.23 despite its continued relative weakness, and while it’s edging closer to its rising short-term trendline, bulls can still hope for a segment-wide rally, which could carry the coin to a new swing high. XRP is stuck below its long-term trendline, and there is still no strong indication of a looming trend change in its market.

XRP is on sell signals on both time-frames in our trend model, with support zones 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 showed encouraging strength in early trading today, but it failed to build up bullish momentum and it’s still trading near the support/resistance zone that has been in focus all week. The rising short-term trendline and the key $56 level are in no danger here, and should the coin maintain its relative strength, the segment could be in for another leg higher.

LTC is 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.

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.