Crypto Update: Coins Drift Sideways As Bulls Fail To Take Control

The past few days have been very quiet in the cryptocurrency segment, with the majors trading in progressively narrowing ranges following last week’s failed rally attempt. While BTC continues to trade in the close vicinity of the $10,000 price level, the top altcoins are all stuck below their recent breakdown levels, confirming the still strong selling pressure in the segment. While another major downswing has been avoided, so far, the brief spikes higher lacked the momentum that would be needed to turn the bearish tide in the market.

With no signs of accumulation among the smaller coins, there is little hope for a broad rally in the segment in the near future, and only BTC is showing promising stability in the face of the negative market-wide trends. Odds favor a bearish move out of the current consolidation patterns, even in the case of BTC, while altcoins are even more likely to continue the ongoing downtrend, with the bearish leaders, such as XRP and ETH all being close to their recent lows. Our trend model is still on sell signals on both time-frames in most cases, and apart from BTC, the top coins are far from an upgrade.

BTC/USD, 4-Hour Chart Analysis

While BTC is still in the best technical position among the majors, it failed to leave the zone around the $10,000 price in the quiet, low-volatility environment. The coin has been trapped in a narrow short-term trading range in the past few days, while the larger-scale triangle consolidation pattern also remains intact. The short-term trend is neutral in the coin’s market, but in light of the segment-wide weakness, downside risks remain high.

Our trend model is still on sell signals on both time-frames even in the case of BTC, and even though a move above $11,300 could still lead to a test of the prior rally high, a dip below the recent swing low is still more likely. Below the initial zone near $9,200, further support zones are found near $8,400 and $8,200, while resistance zones are ahead near $11,300, and $13,000.

ETH/USD, 4-Hour Chart Analysis

Eth has been holding on above the key $180-$185 support zone despite the bearish drift lower in the coin’s market, but even though another breakdown has been avoided, the coin is still clearly stuck below the $200 price level and the downtrend is likely to continue following the current consolidation period. The volatility-compression pattern that formed in the coin’s market has to be considered a bearish pattern, given the steep drop of the recent months.

Last week’s failed rally also confirms the negative trend, and ETH is still on clear sell signals on both time-frames in our trend model, and a move below the recent swing low is possible as soon as in the coming days. Below the initial zone between $180 and $185, further support is found near $160, and $145, while above $200, resistance levels are still ahead near $230 and $265.

Ripple Flatlines As LTC Remains Weak

XRP/USD, 4-Hour Chart Analysis

Ripple’s market has been very quiet in recent days, even in comparison to the other majors that also traded in narrow ranges, but although XRP is trading well above its recent panic low, it hasn’t shown any sign of bullish momentum. The coin continues to hover just above its prior bear market low near the $0.26 support level, while being stuck below the initial resistance zone near $0.28.

XRP is still on sell signals on both time-frames in our trend model, and we still expect the bear market to continue, especially given the weak bounce and the weakness among the top altcoins. Below the $0.26 level, further support is found near $0.23, while above $0.28, strong zones are ahead near $0.30, $0.32, and just above $0.33.

LTC/USD, 4-Hour Chart Analysis

Even though LTC is holding up above its recent marginal new low, it remains the weakest among the top coins from a short-term technical perspective, and a move below its prior swing low is very likely in the coming week. The coin didn’t manage to get back above $75 despite the quiet days in the segment, and it is still the prime candidate to lead the next leg lower in the short-term downtrend, with the $85-$90 zone looking unreachable for bulls.

Our trend model is firmly on sell signals on both time frames, and even in the case of a broad rally attempt in the market, traders shouldn’t enter new positions in the coin, until a move above $85. Initial support is found near $64, with another level near $56, while resistance is ahead $75, in the $85-$90 zone, and near $100.

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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.