Crypto Update: Coins Find Footing Amid Global Stimulus Deluge

The crypto segment continues to be relatively stable amid the global COVID-19 crisis, with the top coins staying away from their crash lows from last week. While global risk, assets and especially the major fiat currencies are having a crazy week, with the dollar hitting a new all-time amid the broadening liquidity crisis, the top digital currencies have been gaining ground in the past 24 hours. The unprecedented government and central bank interventions could cause a sustained bounce in other asset classes as well, but for now, the segment’s relative strength is impressive.

Our trend model remains on sell signals on both time-frames despite today’s bounce, and even though the coins are now approaching their steeply declining short-term trendlines, downside risks remain high.  A retest of the lows or even new lows are still possible in the coming weeks, and we need more evidence of technical strength before pulling the trigger to reenter the market.

BTC/USD, 4-Hour Chart Analysis

BTC remains relatively strong from a technical perspective and it managed to recapture the $5,350 resistance level today in early trading after respecting the $5,050 support yesterday. The coin is still in a clearly declining short-term trend, while also trading in a relatively narrow short-term range, but its recent stability could mean that it will move out in a bullish fashion form the range. The huge stimulus packages should benefit BTC in the long run, and that could mean that a sustained low is already in.

BTC is on sell signals on both time-frames in our trend model, with support now found near $5,350, $5,050, $4,400, and $3,850, and with resistance zones ahead near $5850, between $6,000 and $6,100, and near $6,500 and $6,750.

ETH/USD, 4-Hour Chart Analysis

ETH is finally showing early signs of strength after being relatively weak for an extended period, and the coin is already marginally above the key $120 level thanks to today’s bounce. The coin is still facing strong resistance in its current price range with its steeply declining short-term trendline is also nearby, and should the global selloff resume, another wave of selling could hit ETH.

ETH is on sell signals on both time-frames in our trend model, with major support zones found near between $95 and $100 and between $73 and $75, and with resistance zones ahead near $120, between $130 and $135 and near $145 and $160.

XRP And LTC Back Drift Sideways

XRP/USD, 4-Hour Chart Analysis

XRP is once again trading right at the $0.15 level, with remarkably low volatility in its market, and while the coin still failed to build up bullish momentum, its prior low is in no danger here. XRP is still well below its declining short-term trendline, and the upper boundary of its consolidation range is also ahead as resistance, so short-term traders should still stay away from reentering the market.

Our trend model is still on sell signals on both time-frames, with support zones found near $0.13 and $0.11, and with resistance zones ahead near $0.15, $0.1650, $0.1750, $0.19, and $0.20.

LTC/USD, 4-Hour Chart Analysis

LTC drifted above its steeply declining short-term trendline today, while also recapturing the $34.50 support/resistance level, confirming its relative technical strength, and giving hope for bulls for a more sustained rally. The coin is still not out of the woods, but its progress is a positive sign for the segment, and it could soon test its previously dominant declining long-term trendline, which is currently found near the $40 price level.

LTC is still on sell signals on both time-frames in our trend model, with support zones found near $34.50, $30, and $26.50, and with resistance zones ahead $38, $44, and $51.

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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.