Crypto Update: Coins Drift Sideways As BTC Holds Its Ground
The major cryptocurrencies are neutral, with a slight bearish bias amid a furious rally in global risk assets. The move was triggered by the reports regarding an imminent trade deal between the U.S. and China and the decisive result of the snap British elections. The fact that BTC held up well in the face of the risk rally is another small plus for bulls here, together with the most valuable coin’s recent stability, but the broader trends remain negative, and the current sideways drift is most likely still part of the post-crash consolidation.
Our trend model is also overwhelmingly bearish on all time-frames, and since altcoins remain very weak from a technical standpoint, the outlook for the segment continues to be gloomy across the board. The coming days will be crucial for the segment, as even though a key breakdown has been avoided even in the case of the weakest majors, the prior swing lows are not far below their current price levels. A major downswing could begin soon, and bulls would need a clear positive shift in price action to avoid it.
BTC/USD, 4-Hour Chart Analysis
BTC has been drifting slightly higher today, trading near the $7,200 level that has been in focus most of the week. The coin remains in a safe distance of its November low, but even the key short-term $7,400 level proved too strong so far, despite BTC’s relative stability. The broad declining trend is clearly intact in the coin’s market, and odds are still in favor of another downswing in the coming weeks.
BTC is still on sell signals on both time-frames in our trend model, with support zones found near $7,000, $6,750, and $6500, and with resistance ahead near $7,400, $7,600, $7,800, and $8,200.
ETH/USD, 4-Hour Chart Analysis
ETH continues to trade below the key long-term $145 level despite its recent failed breakdown pattern and today it held up well so far together with the broader market. The coin is still relatively weak from a technical perspective, though, and while the prior swing is not in danger currently, ETH failed to make any kind of technical progress this week.
Our trend model remains on sell signals on both time-frames, with the next major support zone found near $130, and with resistance zones now ahead near$145, $160, and between $180 and $185.
XRP Remains Stable As LTC Approached Swing Low
XRP/USD, 4-Hour Chart Analysis
XRP has been showing relative weakness compared to its closest peers today, and although it remains above its November swing low, it hit a fresh one-week low in early trading. The coin is now trading below the $0.22 level that has been at the center of attention in recent days, and a new bear market low seems very likely, as soon as in the coming days.
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
LTC is also stuck below a key support/resistance zone near $44, and even though it has been showing stability today, its prior swing low is dangerously close. The coin looks ready to lead the way lower for the whole segment yet again, and while, with a radical shift in price action, a short-term trend change is still possible here, downside risks are very high.
LTC remains on sell signals on both time-frames in our trend model, with support zones now found near $38 and $34.50, and with resistance zones ahead near $44, $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.