Crypto Update: Coins Enter Shallow Correction
The segment experienced a rush of optimism yesterday, as Bitcoin’s price pushed over $10,000, Litecoin, the undoubted leader of the rally hit an intraday high at $235, and the other relatively strong coins like Monero, Dash, and IOTA also shined.
Ethereum Classic, the early leader continued its short-term correction, while the slightly lagging currencies, most notably Ethereum and Ripple, registered modest gains.
Most of the majors got slightly overbought from a short-term technical perspective, and it’s no surprise that the rally halted, especially given the strong resistance zone in the current area following the heavy selling of the last several weeks. The coming pull-back will be a crucial one, as, after the higher swing highs, the coins should form higher swing lows as well, to establish short-term uptrends.
BTC/USD, 4-Hour Chart Analysis
Bitcoin hit an overnight high near $10,300 before the consolidation began, but it’s still trading well above the key $9000-$9200 support zone that could be in focus during the short-term correction. Resistance levels above $10,000 are at $11,300 and $13,000 while further support is between $7650 and $7850.
Monero, which has been among the first majors to break the dominant declining trendline touched the $300 level, before turning lower overnight, and it remains in a good technical position to form a new uptrend. The coin is trading right at the $280 support level, with further levels at $240 and between $200 and $215.
Look Out for Signs Rotation During the Consolidation
XRP/USDT, 4-Hour Chart Analysis
As the segment is still acting bullish, with low correlation and volatility and positive volume patterns, the rotation between the coins will likely continue. That could mean that the currently lagging coins might have their moment in the sun in the coming period, so traders should watch Ripple, ETC, ETH, NEO, and Stellar for signs of early strength, even as ETH and NEO are still expected to continue their broader correction.
As the weekend is shaping up to be an exciting one for investors looking for re-entry points, stay tuned for our detailed technical analysis later in today.
Featured image from Shutterstock
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.