Crypto Update: Coins Hit New Lows But Bulls Stage Comeback

The cryptocurrency segment is having a very active Monday’s session following a late-Sunday sell-off that carried the majors to new lows. The top coins all violated Friday’s intraday minimums, but the majority managed to bounce back above those levels thanks to the broad rally, and the failed breakdown could lead to a more sustained counter-trend move in the coming days. That said, the underlying trend remains bearish in the segment, and we expect the sell-off to resume following the oversold rally.

The majors are still oversold from a short-term perspective and although unlikely, we can’t still rule out a broader failed breakdown pattern emerging in the coming days. For now, the outlook remains clearly bearish from a long-term standpoint, and traders should stay away from entering new positions, with none of the top coins being strong enough to warrant optimism.

BTC/USD, 4-Hour Chart Analysis

BTC spiked as low as the $6,500 support level during the move to new lows but it quickly rallied back up to the October low thanks to the violent rebound. The coin remains in a clear short-term downtrend despite today’s bounce, and although the still oversold short-term momentum readings could lead to a more sustained rally attempt, the outlook remains negative.

The coin is still on sell signals on both time-frames in our trend model, with support zones now found near $7,000, $6,750, and $6500, and with resistance ahead near $7,400, $7,600, $7,800, and $8,200.

ETH/USD, 4-Hour Chart Analysis

ETH got close to the next major support zone near $130 due to the secondary sell-off, and while it bounced back together with the broader market, it remains clearly below its October low.  The $145 level has been in focus today, amid the volatile moves in the segment,  but the coin remained well off the key long-term $160 resistance, validation the technical breakdown and the new leg lower in the ongoing downtrend.

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

XRP Hits New Bear Market Low As Litecoin Violates $44

XRP/USD, 4-Hour Chart Analysis

XRP hit its lowest level since lat-2017 after spiking below the $0.21 support, bottoming out near $0.20 together with the broader market. The new bear market low once again confirmed the relative weakness of the coin, and since XRP is now lagging even from a short-term perspective, the technical setup is outright hostile for bulls.

XRP is still on sell signals on both time-frames in our trend model, with support zones now found near $0.21 and $0.20, and with resistance zones ahead near $0.23, $0.2475, $0.26, and $0.28.

LTC/USD, 4-Hour Chart Analysis

LTC is also showing weakness despite the segment-wide bounce, and after dipping below $44, the coin failed to get close to even the $50 level, let alone the key long-term $51 resistance. The technical setup remains clearly bearish in the coin’s market, and although the correction could continue in the coming days, odds still favor further losses and a possible test of the late-2018 low.

LTC remains on sell signals on both time-frames in our trend model, with support zones now found near $44 and $38, and with resistance zones ahead near $51, $56, and $64.

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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.