Crypto Update: Coins Extend Gains as Rally Broadens
After short-term buy signals started popping-up in several majors following Sunday’s strong reversal, yesterday’s session saw an encouraging broad-based push higher in the segment in late trading. Bitcoin continued to lead the way higher, after being strongest coin throughout the preceding two-week downswing. Altcoins also joined the advance after a rather long period of relative weakness, although Ethereum and Ripple continue to lag the performance of the smaller altcoins.
BTC/USD, 4-Hour Chart Analysis
The most valuable coin is trading in the $9000-$9200 zone once again, getting closer to the broad declining trendline, currently found just above the $10,000 resistance, which has been capping the post-crash bounce.
The short-term buy signal is clearly intact, with still room for advance according to the momentum indicators. Primary short-term support is found at $8400, with another strong zone near $7650, while further resistance is ahead at $10,500.
ETH/USD, 4-Hour Chart Analysis
Ethereum still failed to exit the steep declining trend despite the robust rally in the segment, and the strong resistance zone near $575 stopped the advance for now. Despite the short-term weakness, the long-term picture is favorable for investors, but traders should still be cautious with new positions here. Primary support is still found at $500, while strong resistance is ahead at $625, and in the key $740-$780 zone.
Improving Outlook for Most Altcoins
XMR/USDT, 4-Hour Chart Analysis
While BTC, Litecoin, Ethereum Classic, IOTA, and Monero remain strong, a new batch of coins is outperforming the early leaders of the bounce today. NEO, Cardano, Stellar, and Dash are all up by double digits in early trading, which is a sign of bullish rotation.
That said, the declining broad trend in most of the coins is still ongoing and with some of the largest coins dragging the market lower, we still expect a bumpy road before a clear break-out above the key trendlines. Ripple is by far the weakest major so far today, as the coin is still stuck near the $0.68 level, failing to join the late-day move higher yesterday.
As traditional financial markets are in a standstill before the Fed’s much-awaited rate decision tonight, a burst in activity could be ahead for the crypto-segment as well late in the US session, so short-term traders should expect volatile conditions.
Stay tuned for our detailed technical analysis later on 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.