Crypto Update: Coins Hit Multi-Week Lows As Selloff Deepens
The major cryptocurrencies fell sharply in the past 24 hours, hitting new multi-week lows across the board. Most of the top coins violated their recent correction lows overnight, with most of them also dropping below key support levels in the process. On a slightly positive note, the recently strong ETH and LTC are holding up near their prior swing lows, giving hope to bulls that the current downswing will conclude the overbought correction.
Our trend model continues to be bearish concerning the short-term time-frame, but the long-term signals remain dominantly positive. The relatively low level of volatility in the segment is a positive sign, but the correction could still continue due to the lofty gains of the past months and the extremely bullish sentiment that peaked two weeks ago.
BTC/USD, 4-Hour Chart Analysis
BTC dipped below the $9,200 level overnight, getting slightly oversold from a short-term momentum perspective. The coin hit its level in a month, but price action in its market remains relatively stable and the previously dominant long-term trendline is safe. The correction could soon be over, but until we see clear signs of strength among the majors, traders shouldn’t enter new positions, even as long-term investors could add to their holdings here.
BTC is on a short-term sell signal while still being on a long-term buy signal in our trend model, with support zones found near $9,200, $8,600, and $8,400, and with resistance ahead near $10,000, $11,300, and $13,000.
ETH/USD, 4-Hour Chart Analysis
ETH got close to the key long-term $230 support/resistance level during the overnight selloff, but it remains above that and the broadest advancing short-term trendline, still maintaining its technical relative strength. The coin is approaching oversold territory, according to the short-term momentum indicators, but for now, the short-term setup remains mixed for traders, although even speculative short-term positions could already be opened here.
Our trend model is still on a short-term sell signal while being on a long-term buy signal, with major support zones found near $230, $200, and between $180 and $185, and with resistance zones ahead near $169, $275, $290, and $300.
XRP Dips Below Long-Term Trendline As LTC Eyes $64
XRP/USD, 4-Hour Chart Analysis
XRP continues to show technical weakness, dipping easily below the $0.26 level, and even violating the $0.2475 support level and its previously dominant long-term trendline as well. The coin is on the verge of a long-term downgrade in our trend model, but given the segment-wide stability, a recovery above the trendline is still possible.
Our trend model is on a short-term sell signal while still being on a long-term buy signal with support zones found near $0.23 and $0.21, and with resistance zones ahead near $0.2475, $0.26, $0.28 and $0.30.
LTC/USD, 4-Hour Chart Analysis
LTC got very close to the key long-term $64 support level overnight, and while it’s testing its prior correction low, its relative stability is a plus for the whole segment. The corrective pattern in the coin’s market is still intact, but the extremely bullish sentiment has been reset, and LTC could be ready to lead the way out of the bearish short-term formation.
LTC is on a short-term sell signal while still being on a long-term buy signal in our trend model, with support zones now found near $64, $56, and $51, and with resistance zones ahead near $72.50, $75, $85, and $90.
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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.