Crypto Update: Coins Drift Sideways As Bullish Momentum Dwindles

The cryptocurrency segment is having a rather neutral day following a series of bullish sessions, with the top coins being little changed, We have been seeing signs of weakness among the smaller coins, while the majors failed to cross the resistance levels that we have been monitoring in recent days, so even though the uptrend remains clearly intact, we could be in for another pullback.

Despite today’s mixed price action, our trend model remains bullish across the board on both time-frames, and the long-term trend change seems safe in the segment. The leader of the current leg higher, ETH got close to testing the target level of $230, getting severely overbought in the process, so while the majors could continue to push higher, ETH’s rally is definitely getting stretched and traders should wait for better entry points to establish new positions.

BTC/USD, 4-Hour Chart Analysis

BTC continues to trade in a very narrow range near the $9,750 level, with low volatility and relatively low trading activity. The coin remains stuck below the all-important $10,000 level, but it’s clearly holding up above its prior swing high, and short-term trendline, and with the long-term trend change being confirmed the outlook is bright for bulls here.

BTC is still on buy signals on both time-frames in our trend model, with support zones found near $9,200, $8,600, and $8,400, and with resistance ahead near $10,000, and $11,300.

ETH/USD, 4-Hour Chart Analysis

All eyes have been on ETH due to its persistent relative strength in recent days, and the coin continued to push higher in early trading, topping out near $225 before the start of the U.S. session. The strong short-term uptrend remains intact in ETH’s market, but the short-term momentum indicators are now severely overbought, so while traders could still hold on to their positions here, opening new positions is not recommended here.

Our trend model now on a neutral short-term signal while still being on a long-term buy signal, with major support zones found near $200, between $180 and $185, and near $160, and with resistance zones ahead near $230 and $260.

XRP Still Glued to $0.28 As LTC Fails At $75

XRP/USD, 4-Hour Chart Analysis

XRP couldn’t leave behind the key $0.28 level, despite its recent long-term breakout, with its bullish momentum getting weaker. The short-term momentum indicators are showing overbought readings, so traders shouldn’t enter new positions, but since another higher can’t be ruled, they can hold on to their existing trades, using tighter stop loss levels.

Our trend model now on a neutral short-term signal while still being on a long-term buy signal, with support zones found near $0.26 and $0.2475 and with resistance zones ahead near $0.28, and $0.30.

LTC/USD, 4-Hour Chart Analysis

LTC failed to break out above the key $75 level today, despite briefly trading above it, and it remains relatively weak compared to the leaders of the current leg higher. The coin remains in a well-defined short-term uptrend and in a freshly formed long-term uptrend, and while a sharp reversal is not off the table yet, the segment-wide trends make a breakout likely in the coming weeks.

LTC on buy signals on both time-frame sin our trend model with support zones still found near and $64, $56, $51, and $44, and with resistance zones ahead between $72.50 and $75 and near $85.

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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.