Crypto Update: Coins Little Changed Despite Overnight Dip
While the major coins saw some activity overnight, spiking briefly lower, the short-term trading ranges remained intact in most cases. The technical setup in the segment is also little changed, with a clearly bearish long-term picture, and a rather neutral short-term outlook. While some of the smaller coins our outperforming yet again, the total value of the market hasn’t changed since the weekend, and we still don’t have evidence of sustained positive capital flows to the segment.
The top three coins continue to be stuck below the key short-term resistance levels that we have been monitoring for weeks, and our trend model remains on sell signals on both time-frames with regards to the, despite the recent gains in BTC and ETH. On a positive note, the swing lows set at the beginning of the month are still safe, helping the immediate outlook for the majors.
While we still expect the bear market to resume, trades should continue to play the bullish short-term trend in the strongest coins, although strict risk management rules should be used, and position sizes should remain small.
LTC/USD, 4-Hour Chart Analysis
While Litecoin is still below its weekend high, the relatively strong coin continues to trade in a clear short-term uptrend, holding on to most of its gains from the counter-trend move that started in February.
The coin is very close to the $60 price level after briefly getting close to the primary support level at $56, and given the stable short-term uptrend a move towards the next target zone near $64 is still possible despite the bearish segment-wide pressures. Further support zones are found near $51, $48, and $44, and our trend model remains on a short-term buy signal.
ETH/USD, 4-Hour Chart
Ethereum is still well reflecting the mixed outlook for the segment, and we continue to pay special attention to the most important leader of the February move. ETH tested the $135 level overnight, but it held up well above the important $130 support, remaining near the mid-point of its neutral short-term trading range.
That said, as the $145 resistance is in no danger here, the coin remains on sell signals on both time-frames in our trend model, and traders shouldn’t enter new positions here. Further strong resistance is ahead near $160 and $180, while support is found near $112 and in the $95-$100 zone.
Bitcoin Glued to $4000 as Ripple Faces Strong Headwinds
BTC/USD, 4-Hour Chart Analysis
Bitcoin continues to trade very close to the $4000 price level, just under the key long-term $4000-$4050 support zone, which is the short-term line-in-the-sand for the coin. For now, BTC is still on sell signals on both time-frames in our trend model, but the relative strength of the past few days is encouraging for bulls, and a break-out could help the whole segment in resuming the counter-trend move.
Primary support is found near $3850, with further zones near $3600, $3450, and $3250, while above the primary long-term zone, another strong resistance zone is found near $4450, and traders should still not enter new positions here.
XRP/USDT, 4-Hour Chart Analysis
While Ripple is still holding up in a very narrow trading range, clearly north of the primary support zone near $0.30, the coin remains bearish from a long-term perspective. XRP moved out of the long-standing triangle consolidation pattern this week, but a strong momentum move is yet to happen in the coin’s market.
With the mixed segment-wide short-term picture in mind, we remain defensive towards Ripple here, given the hostile long-term setup, but a broad rally could help the short-term outlook, especially if Bitcoin can remain relatively strong. Further support zones are found near $0.28, and $0.26, while above the primary $0.32 level, further key resistance levels are ahead near $0.3550, and $0.3750.
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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.