Crypto Update: Coins Hit Multi-Week Lows As Market Suffers Major Blow

The major cryptocurrencies have been under severe pressure today, as although yesterday’s spike lower was followed by a segment-wide bounce, the current broad plunge caused serious technical damage. Today’s move likely marks the end of the counter-trend rally, even though the prior swing lows are not in immediate danger in most cases, despite the severe losses.

After breaking below its weakly rising short-term trendline, LTC led the way lower yesterday in late trading, as expected. LTC is the closest among the majors to hit a new low, trading near the key $64 level again. ETH also clearly violated the $200 price level, while XRP got hit hard too, with BTC threatening with a larger-scale breakdown below its broad triangle consolidation pattern. As long-term technicals are still pointing to the continuation of the altcoin bear market, the current sell-off could lead to a major downswing in the segment, should the prior lows fall.

BTC/USD, 4-Hour Chart Analysis

BTC hit its lowest level in almost a month today, amid the sell-off among altcoins, and the worries regarding the plunge in the hashrate of the Bitcoin network. The coin moved out its triangle consolidation pattern and barring a quick reversal, that could trigger a large-scale drop in its market, with all eyes now on the support zone near $9,200.

The coin is now back on sell signals on both time-frames in our trend model, but it is still in the best technical position among the majors, with further support zones found near $8,400 and $8,200, and with resistance zones ahead near $10,000, $11,300, and $13,000.

ETH/USD, 4-Hour Chart Analysis

ETH followed the lead of Litecoin in the past 24 hours and even though initially, it held up relatively well, amid the broad sell-off, today, it approached the $180-$185 zone. While the prior swing low is not in danger, the coin triggered a short-term sell signal in our trend model and a new low is likely in the coming weeks.

Our trend model is also on a long-term sell signal, with support below the $180 and $185 zone found near $160, and with resistance above $200 ahead near $230 and $260.

Litecoin Leads Sell-Off As Ripple Plunges Below Key Support

XRP/USD, 4-Hour Chart Analysis

Ripple produced yet another failed spike higher, and while yesterday, it recovered above $0.28 after triggering a sell signal on Sunday, it is now back below $0.26 threatening with a move below its prior consolidation zone.

The coin likely concluded its counter-trend rally, and ongoing downtrend could resume as soon as in the coming days. Further resistance zones are ahead near $0.30, $0.32, and just above $0.33, while support zones are found near $0.2475 and $0.23.

LTC/USD, 4-Hour Chart Analysis

Litecoin failed to hold on above its rising short-term trendline, confirming its relative weakness yet again, and it crashed below $64 immediately after violating the trendline yesterday in late trading. While the coin has been consolidating above the key support level today, it remains under clear selling pressure, and the broader downtrend could resume very soon.

The coin is now back on sell signals on both time-frames in our trend model, with resistance zones ahead near $75, between $85 and $90 and near $100, and with further support found near $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.

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.