Crypto Update: Coins in Standstill as Bitcoin Eyes $4,000 Again
The major coins continued to drift sideways for the second day in a row following the active days earlier on this week. The short-term direction is still unclear in the segment, and even though the failed breakdown patterns that developed this week are encouraging for bulls, in light of the still overwhelmingly bearish long-term picture, odds still favor a bearish larger-scale move in the coming weeks and months.
EOS/USD, 4-Hour Chart
That said, the counter-trend move that topped out two weeks ago might still resume, providing short-term trading opportunities. All eyes are still on Litecoin, Ethereum, and EOS, as they have been leading the way higher in February, but today, Bitcoin showed early signs of relative strength, which could be crucial for the continuation of the bullish short-term move. For now, our trend model is still on sell signals on both time-frames in most cases, and until we start to see broader technical strength, caution is still warranted.
BTC/USD, 4-Hour Chart Analysis
Bitcoin continues to hover around the $3850 support/resistance level, but today; the most valuable coin outperformed the broader market, and spent most of the day above the key short-term level. While the $4000-$4050 zone is still out of reach, BTC could lead a broad-based rally attempts, should its relative strength persist over the weekend.
With the long-term downtrend being in no danger here, even a move to $4450 would only qualify as a counter-trend move, traders should remain cautious with new positions here, but smaller, speculative positions could be opened above $4000. That said, odds continue to favor the continuation of the bear market, with support levels still found at $3600, just above $3450, and near $3250 and $3000.
LTC/USD, 4-Hour Chart Analysis
Litecoin settled down near the key $56 level after its strong rally, and it continued to consolidate just below its multi-month high today. Even as the coin might have already formed a short-term swing high, the counter-trend move could still continue, and the coin remains on a short-term buy signal in our trend model.
The bearish long-term setup is still intact in the coin, and we still expect larger-scale move lower after the current rally runs its course, even if a broader bottoming process is already underway. Strong resistance above $56 is still ahead at $64, while support is found near $51, $48, $44, and $38.50.
Ethereum and Ripple Still Looking Weak
ETH/USD, 4-Hour Chart
ETH is still trading in the neutral short-term zone between $130 and $145 following the volatile days this week, and although there is no clear short-term trend in the coin’s market, it remains relatively weak from a long-term technical perspective. Ethereum’s weakness is a negative sign for the whole segment, but given BTC’s strength and Litecoin’s stability, a broad-based move higher is still a possibility here.
Despite that, traders and investors still shouldn’t enter positions here, with our trend model still being on clear sell signals on both time-frames. Above $145, strong resistance levels ahead at $180 and $160, with key support zones found near $112, between $95 and $100, and near $80.
XRP/USDT, 4-Hour Chart Analysis
Ripple continued to drift towards the confluence of its broad consolidation pattern, but the coins still failed to show sustained momentum in either direction. The coin is still likely to enter another large-scale downswing, given its persistence weakness, and the failed rally attempts of the past few months.
Ripple is still holding up above $0.30, but there are very strong resistance levels just ahead, and selling pressure is still apparent in the coin’s market. Key resistance zones are found near $0.32, $0.3550, and $0.3750, and with support levels below $0.30, t $0.28 and $0.26.
Featured image from Shutterstock
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.