Crypto Update: Coins Extend Bounce As Bulls Defend Lows
The major cryptocurrencies are all trading higher near the U.S. market open, with the top coins taking out yesterday’s correction highs. From a technical perspective, ETH and XRP continue to be in the best setups, as XRP managed to recapture the 40.28 level, while ETH is trading clearly north of the $160 level. Today’s move still only qualifies as a counter-trend bounce, but should LTC and BTC also sustainably recapture key resistance levels, a failed breakdown pattern could form in the segment.
While today’s rally is encouraging for bulls, the fact that BTC is still very weak technically speaking makes every rally attempt suspicious. Traders should still stay away from entering new positions here, although, in the case of a broad rally above the breakdown levels, the short-term trends could flip bullish in the market.
BTC/USD, 4-Hour Chart Analysis
BTC spiked up to the primary resistance zone near the $7,600 after moving out of its narrow post-crash consolidation pattern. Despite the bounce, the breakdown is clearly intact in the coin’s market and we expect the sell-off to resume, with BTC still being relatively weak compared to other majors. A quick recovery above $7,800 could still save the day for bulls and trigger an unlikely short-term trend change.
The coin is still on sell signals on both time-frames in our trend model, with support zones now found near $7,000 and $6,750, and with further resistance zones ahead near, $7,800, $8,200, $8.400, and $8,650.
ETH/USD, 4-Hour Chart Analysis
ETH has been among the leaders of today’s bounce, and since it’s still clearly above its prior swing low, it remains bulls’ best hope with regards to the coming weeks. That said, the coin’s market is clearly dominated by a declining short-term trend, and with the bearish long-term pressures also being apparent, and rally attempt should be considered as a counter-trend move.
Our trend model is still on sell signals on both time-frames, with support zones now found near $145 and $130, and with resistance zones ahead between $180 and $185 and near $200.
XRP Remains Upbeat As LTC hits $51 Again
XRP/USD, 4-Hour Chart Analysis
XRP continues to show relative strength despite its recent trendline break, and it managed to recapture the $0.28 support/resistance level today, almost recovering its entire plunge. While the recovery could lead to another leg higher XRP’s counter-trend rally, traders should remain defensive here, as the strongly bearish long-term trend is still likely to resume.
XRP is now on sell signal son both time-frames in our trend model, with support zones now found near $0.26, and $0.2475, and $0.23, and with resistance zones ahead near $0.30, and $0.32.
LTC/USD, 4-Hour Chart Analysis
LTC has been rallying together with the broader market today, but even though it managed to remain $50, the $51 resistance level is still towering ahead of bulls. The coin is still stuck below its prior crash low, similarly to BTC, but should a failed breakdown pattern form, the whole segment could get a boost, as LTC has been showing the way for the market in recent months.
LTC remains on sell signals on both time-frames in our trend model, with resistance zones now found near $44 and $38 and with major resistance zones ahead near $51 and $56.
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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.