Crypto Update: Coins Hit Marginal New Highs As Bullish Push Continues

The major cryptocurrencies are all sporting gains following the U.S. close, as even though most of them are still clearly overbought from a short-term momentum perspective, sentiment remains upbeat in the segment. The leading coins of the rally hit marginal new swing highs today, but the bullish momentum is weaker than during the recent move higher, warning of a possible deeper pullback in the coming days, which could clear the overbought readings.

Our trend model remains mixed on both time-frames, but short-term positions now seem risky due to the stretched rally. With that in mind, traders should wait until a pullback to ride the freshly formed short-term trend, especially since the long-term outlook remains mixed, at best. The next pullback will be crucial in deciding the fate of the rally attempt, and volatility could increase substantially in the coming week.

BTC/USD, 4-Hour Chart Analysis

BTC topped the $9,000 level, slightly moving above its prior swing high, but the momentum of the move is not convincing. The short-term uptrend is clearly intact but a pullback is likely ahead in the coming days. The extent of the pullback will be crucial, as the coin is still trading above its long-term trendline.

BTC is now on a short-term sell signal and a long-term buy signal in our trend model, with support zones found near $8,600, $8,400, $8,200, and $7,800, and with resistance ahead near $9,200, $10,000.

ETH/USD, 4-Hour Chart Analysis

ETH also managed to rally above its recent swing high after forming a low near the $160 level. The coin is still overbought according to the key short-term momentum indicators, though, and a sustained bullish move is unlikely from the current price level.

Our trend model is now on sell signals on both time-frames, with major support zones found near $160, $145, $135, and $130, and with resistance zones ahead between $180 and $185 and near $200.

XRP Remains Weak As LTC Tops $60

XRP/USD, 4-Hour Chart Analysis

XRP failed to hit a new short-term high, despite today’s broad rally, and it remains weak from a technical perspective compared to its closest peers. While the coin is not severely overbought and further gains are possible here, its bearish long-term technicals still warrant caution.

XRP is on a short-term buy signal while still being on a long-term sell signal in our trend model, with support zones now found near $0.23, $0.21, $0.20, and $0.1930 and with resistance zones ahead near $0.2475, and $0.26.

LTC/USD, 4-Hour Chart Analysis

LTC continues to be severely overbought, as the recent pullback hasn’t changed the values of the short-term momentum indicators. The coin also remains very strong technically, and while a deeper correction is likely, it remains one of the undoubted leaders of the current rally attempt.

LTC is now on a short-term sell signal and a long-term buy signal in our trend model, with support zones found near $56 and $51, 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.