Crypto Update: Coins Dumped Again as Bitcoin Nears $6000
The bloody week continued in the cryptocurrency segment on Fed-day too as the major coins suffered another hit, falling around 10% on average compared to yesterday’s price levels. The move dragged down the previously relatively stronger coins too, and that led to further deterioration of the short-term technical picture, as several key support levels were clearly broken by the majors.
On another negative note, Bitcoin fell below the April low, and the most valuable coin now trades at levels not seen since the February crash. A secular breakdown is not confirmed yet, and the current sentiment is sufficiently negative to trigger a strong bounce especially together given the oversold short-term momentum readings.
That said, the segment and BTC itself are without a doubt in precarious technical setups from a long-term perspective. We will take a closer look at the long-term implications of the current move tomorrow in our upcoming long-term cryptocurrency analysis.
BTC/USD, 4-Hour Chart Analysis
Bitcoin is getting close to the last-ditch support zone between $5850 and $6000, and volatility will likely remain elevated, with a likely test of that zone in the coming weeks. Despite the large possible percentage moves, traders, especially on leverage should stay away from opening positions here, while long-term investors should hold on to their coins. Strong support is found right just below the current price level at $6270, while resistance is ahead at $6500, $6750, and $7000.
Ethereum Sinks Below $500, as Altcoins Hit New Lows Too
ETH/USDT, 4-Hour Chart Analysis
While there is still a large gap between the relatively strong and weak coins from a technical perspective, the May lows have now fallen in all major altcoins as well. Ethereum fell clearly below the $500 support, and tested the $450 level, and although the April low is still well below the current price level, and ETH is much stronger than BTC technically, short-term traders should stay away from the coin, while long-term investors should still be looking for entry points here. Key support levels are found below $450 near $400, 380, and $360, with a weaker level at $420.
XRP/USDT, 4-Hour Chart Analysis
Ripple is in a similar technical setup to Ethereum, also being relatively strong compared to Bitcoin, even as it broke below the May low near the $0.54 level. XRP could test the April low in the coming days, but for now, the long-term buy signal remains intact. Now all majors are on short-term sell signals, with EOS still being the most bullish coin, while Binance Coins also showing some stability, while the weakest currencies such as NEO, Litecoin, and Dash have broken below vital long-term supports.
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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.