Crypto Update: Coins Hit New Cycle Highs As Rally Resumes

The major cryptocurrencies are all significantly higher following the U.S. session as the short-term consolidation concluded with a broad move to new multi-month highs in the segment. While we saw signs of bullish rotation, with most notably ETH and XRP showing strength compared to the previously leading LTC, BTC’s breakout confirms the move. XRP broke out above its declining long-term trendline, and with that, a confirmed long-term trend change is now very close in the segment.

Our trend model is now bullish across the board on both timeframes thanks to today’s technical improvements. While several coins are still trading close to their previously dominant declining trendlines, the broad technical strength is an encouraging sign for bulls. The odds of a sharp reversal are declining and the current leg higher could prove to be crucial for the segment.

BTC/USD, 4-Hour Chart Analysis

While BTC has been slightly lagging the leaders of today’s breakout, it managed to leave behind its narrow consolidation range and it a new three-month high. The coin still faces strong resistance near $10,000, but it remains in a well-defined short-term uptrend and the long-term trend change is also safe in BTC’s market.

BTC is still on buy signals on both time-frames in our trend model, with support zones found near $9,200, $8,600, and $8,400, and with resistance ahead near $10,000, and $11,300.

ETH/USD, 4-Hour Chart Analysis

ETH scored a crucial short-term breakout today, successfully defending the $180-$185 support zone and holding up above its previously dominant long-term trendline. The coin also topped the $200 resistance level, and while a failed breakout is possible here, the coin could quickly test the next major zone near $230, judging by its relative strength.

Our trend model now on buy signals on both time-frames, with major support zones found near $200, between $180 and $185, and near $160, and with resistance zones ahead near $230 and $260.

XRP Breaks Out As LTC Eyes $75

XRP/USD, 4-Hour Chart Analysis

XRP finally broke out above its declining long-term trendline, joining the other coins in the party and it topped several key resistance levels in the process. The coin remains relatively weak from a broader perspective, but the current rally could lead to a major short-covering spike in the wake of the significant technical improvements.

XRP is now on buy signals on both time-frames in our trend model, with support zones now found near $0.26 and $0.2475 and with resistance zones ahead near $0.28, and $0.30.

LTC/USD, 4-Hour Chart Analysis

While LTC got stuck below its prior swing high and the key $72.5-$75 resistance zone, it remains upbeat with regards to the short-term uptrend and its long-term trend change is also intact. The coin’s short-term relative weakness could mean that a more prolonged consolidation period is ahead in the wake of the recent lofty gains, but traders and investors could hold on to their positions here.

LTC is on a neutral short-term signal in our trend model, while being on a long-term buy signal with support zones now found near and $64, $56, $51, and $44, and with resistance zones ahead between $72.50 and $75 and near $85.

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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.