Crypto Update: Coins Hit One-Week Lows As Sellers Still In Control

The cryptocurrency segment continues to have a bearish week, with the majors’ drifting lower for the third day in a row. While the top coins still haven’t broken key support levels in a sustained fashion, technicals remain clearly bearish and all signs point to yet another downswing following the current consolidation period. Even the recently stronger BTC hit a new one-week low in early trading, while XRP and LTC got close to their prior swing low, confirming the strong selling pressure in the market.

While ETH and BTC remain in safe distance of their prior lows, they failed to make any progress on the upside, and barring a strong reversal in the segment, new lows remain very likely across the board. Our trend model continues to support the bearish case as well, and with the overwhelming majority of the smaller coins also showing weakness, traders should remain defensive here.

 

BTC/USD, 4-Hour Chart Analysis

BTC is still trading well below the support zone near the $7,400 level that has been in the center of attention ever since last week’s crash. The coin is also stuck below its steeply declining short-term trendline, although it managed to avoid a significant move lower thanks to its short-term relative strength.  The short-term momentum indicators are still neutral and we still expect the downtrend to resume soon.

The coin is still on sell signals on both time-frames in our trend model, with support zones 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 dropped below the key long-term support level just above $145 today, and even though it remains well above last week’s low and the key $130 level, it is clearly under selling pressure similarly to its closest peers. The consolidation period could still continue in the coming days, despite this week’s losses, but a new low is likely in the coming weeks.

Our trend model 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.

LTC And XRP Test Key Levels

XRP/USD, 4-Hour Chart Analysis

XRP already dipped briefly below the $0.21 support level today after leaving its very narrow trading range. With that, the coin got close to its prior swing low, and the risk of another, possibly violent downswing is on the rise. The relatively weak coin is likely to resume its bear market soon, it’s a prime candidate to lead the way lower for the majors, together with LTC.

XRP is still on sell signals on both time-frames in our trend model, with support zones 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 also tested a key support level near $44 like XRP today in early trading, and the coin is threatening with a move below its low from last week as well. The coin has been showing the way for the segment throughout the current broad downtrend, and its weakness is a negative sign for all of the top coins, making another leg lower even more likely.

LTC remains on sell signals on both time-frames in our trend model, with support zones 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.