Crypto Update: Coins Drift Sideways As Global Stocks Plunge

The major cryptocurrencies had a relatively quiet session, especially in comparison to the wild moves in traditional financial markets, where risk assets were hit hard by the rising risk of a global recession. Although the key safe-haven assets such as gold and US Treasuries rose, BTC remained stuck in its bearish consolidation pattern, while altcoins mostly drifted sideways, holding up in the wake of this week’s failed rally attempt.

The range-bound price action hasn’t changed the underlying technicals in the segment, meaning that the coins remain in bearish patterns, and the consolidation is still likely to end with another leg lower in the ongoing downtrend. That said, relatively quiet and choppy trading could still continue and even another rally attempt is in the cards, but due to the downside risks traders and investors still shouldn; t enter new positions here.

BTC/USD, 4-Hour Chart Analysis

BTC had quite a discouraging session for bulls, as it failed to benefit from the global risk-off shift and the bounce in XRP’s and ETH’s markets. The most valuable coin remains relatively weak from a short-term standpoint, and we still expect a move below last week’s low following the current consolidation phase.

The coin is still on clear sell signals on both time-frames in our trend model, with support zones found near $8,200, $7,600 and $7,800, and with resistance zones now ahead near $8,400, $9,200, and $10,000.

ETH/USD, 4-Hour Chart Analysis

ETH is still showing short-term strength as the top coins continue to consolidate, but it also remains stuck below the key $180-$185 resistance zone. ETH is trading near the lower boundary of its bearish consolidation pattern, and since the oversold short-term momentum readings are now cleared, downside risks are on the rise again.

Our trend model is on sell signals on both time-frames, with support zones now found near $160, and $145, and with resistance zones ahead between $180 and $185 and near $200 and $230.

Ripple Bounces Again As Litecoin Flatlines

XRP/USD, 4-Hour Chart Analysis

XRP bounced higher today together with ETH, but it remains well below the key $0.26 level following the quiet day of trading. XRP managed to climb back above the $0.2475 support/resistance level, but there is still no indication of even a short-term trend change in the coin’s market, and from a broader perspective it is still the weakest among the top coins.

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

LTC/USD, 4-Hour Chart Analysis

LTC traded in a very narrow neutral range today, and it failed to leave the vicinity of the key $56 price level in the quiet environment. While the consolidation pattern is clearly intact in the coin’s market, and last week’s low is in a safe distance from the current price level, the outlook for LTC is still gloomy.

We still expect new lows in the coin’s market and LTC remains on sell signals on both time-frames in our trend model, with further resistance zones above $56 ahead near $64 and $75, and with major support zones now found near $51 and $44.

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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.