Crypto Update: Coins Form Swing Lows As Uptrend Remains Intact

The cryptocurrency segment had a very encouraging session as, after more than a week of corrective rice action, most of the top coins all formed short-term swing lows. Today’s rally means that the coins might be ready to hit new rally highs as soon as tomorrow and that the odds of a confirmed long-term trend change increased substantially.

Our trend model turned bullish in most cases, with regards to the short-term time and while the long-term outlook is still mixed, another leg higher short-term trend would be great news for bulls. The fact that the prior leaders of the rally attempt built up relative strength in the past 24 hours is another positive sign for the whole segment, but traders should still stick to strict risk management rules.

BTC/USD, 4-Hour Chart Analysis

BTC recaptured both the $8,400 and $8,600 price levels, confirmed a short-term swing low while triggering a short-term buy signal as well. The coin is quickly approaching its prior swing low and its strength is great news for bulls, as another leg higher could conserve the long-term trend change in its market.

BTC is now on buy signals on both time-frames in our trend model, with support zones found near $8,600, $8,400, and $8,200, and with resistance ahead near $9,200 and $10,000.

ETH/USD, 4-Hour Chart Analysis

ETH turned higher off its rising short-term trendline, breaking out of its corrective pattern as well. With that, ETH confirmed a short-term swing low, triggered a short-term buy signal, and got close to its recent swing high. That said, ETH is still stuck below its long-term trendline and the very strong $180-$185 resistance zone, so bulls still have a steep mountain to climb before a confirmed long-term trend change.

Our trend model is now a short-term buy signal while still being on a long-term sell signal, with major support zones found near $160, $145, $135, and $130, and with resistance zones ahead between $180 and $185 and near $200.

XRP Continues To Lag As LTC Gathers Bullish Momentum

XRP/USD, 4-Hour Chart Analysis

XRP is back near the $0.23 level thanks to the broad rally in the segment, but it remains relatively weak form a technical perspective. While a short-term buy signal is close for XRP, the long-term downtrend is still in no danger, and traders should focus their efforts on the relatively stronger coins, even as XRP could also join the party in the coming days.

XRP is still on sell signals on both time-frames in our trend model, with support zones now found near $0.21, $0.20, and $0.1930 and with resistance zones ahead near $0.23, $0.2475, and $0.26.

LTC/USD, 4-Hour Chart Analysis

LTC managed to stay above the $51 level and the confluence support zone that we have been monitoring for almost a week, and today it surged higher, recapturing the key zone near $56. The coin could once again lead the way higher in the segment but despite today’s rally, we still can’t conclude a long-term trend change, and a sharp reversal remains in the cards.

LTC is now on buy signals on both time-frames in our trend model, with support zones now found near and $56, $56, and $44, and with resistance zones ahead near $64 and between $72.50 and $75.

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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.