Crypto Update: Coins Hit New Lows but Major Losses Averted

Following today’s key technical breakdown and decisively bullish intraday trends, today’s price action was choppier, as the major coins got oversold from a short-term perspective. While selling pressure remains apparent in the cryptocurrency segment, and there no sign of a developing failed breakdown pattern some of the coins found support during yesterday’s plunge, and another significant leg lower has, so far, been averted by bulls.

That said, the bearish short-term trends are clearly intact in the segment, and even the relatively strong BTC failed to provide bulls something to cheer about. XRP so a sudden spike higher today following a failed intraday breakdown attempt among altcoins, and the move was similar to the previous, failed oversold spikes in the coin’s market. Even though the weakest major could see a longer consolidation period following weeks of persistent weakness, as we speculated yesterday, its bearish long-term outlook wouldn’t change.

The rest of the majors also remained under pressure, with especially LTC and XMR showing short-term weakness, and the overall picture is still clearly bearish in the segment. All of the top coins are still on sell singles on both time-frames in our trend model, and traders still shouldn’t consider entering new positions even in the relatively strong BTC.

BTC/USD, 4-Hour Chart Analysis

BTC remained below yesterday’s low during today’s breakdown attempt, once again showing strength in comparison to the major altcoins, but the market-leading coin failed to build up bullish momentum. The coin is still above its previous swing low, holding up within its broader consolidation pattern, but given the segment-wide weakness, we continue to expect a move below $9.200, as soon as in the coming days, which could lead to a volatile dip in BTC’s market.

Our trend model is still on sell signals on both time-frames, and below the $10,000 price level, sellers remain in control of BTC’s market. Below the initial zone near $9,200, further support zones are found near $8,400 and $8,200, while resistance zones are still ahead near $10,000, $11,300, and $13,000.

ETH/USD, 4-Hour Chart Analysis

While ETH didn’t test the key long-term $160 level during today’s dip, avoiding yet another key breakdown, the bounce was weak in the coin’s market, and the short-term downtrend remains clearly intact. Only a quick recovery above the $180 level would give bulls hope for a short-term trend change, and another leg lower in the ongoing downtrend remains much more likely, especially in light of the widespread weakness among altcoins.

ETH is also firmly on sell signals on both time-frames in our trend model, and while a larger-scale correction is in the cards in the coming weeks in the wake of the steep losses of the recent months, the coin shows no sign of technical strength. Below the initial support zone near $160, the next major level is found at $145, while above the key long-term $180-$185 zone, resistance levels are ahead near $200 and $230.

Ripple Spikes Back to $0.26 as Litecoin Continues to Lead Sell-Off

XRP/USD, 4-Hour Chart Analysis

Ripple tested yesterday’s low today, but it managed to hold up above the $0.2475 price level, and the coin briefly spiked above $0.26 level following the failed breakdown attempt. Despite the bounce, the coin remains below yesterday’s breakdown level, and although its recent panic low is still in no danger, the short-term downtrend is likely to continue. That said, given its long-term weakness and the recent steep drop, the coin could be in for more consolidation before it hits a sustained new bear market low.

XRP is still on sell signals on both time-frames in our trend model, despite today’s bounce, but the prior bear market low and the $0.26 level could remain in focus in the coming weeks.  Initial support is found near $0.23, while above $0.26, strong resistance zones are ahead near $0.28, $0.30, and $0.32.

LTC/USD, 4-Hour Chart Analysis

Litecoin continues to show severe short-term technical weakness, and after leading yesterday’s breakdown, it dipped clearly below its overnight lows and plunged as low as $62 ahead of the broad intraday bounce in the segment. Even after the bounce, LTC is still close to its fresh low and the coin will likely continue to lose ground, even as it is now oversold from a short-term momentum perspective.

While that means that a more meaningful rally attempt could be ahead, our trend model is still firmly on sell signals on both time frames, and downside risks remain high. The $64 price level is now at the center of attention, with the next major support zone being found near $56, while resistance zones are ahead near $75, between $85 and $90, and near $100.

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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.