Crypto Update: Coins Plunge Below Support as Bounce Fades
Cryptocurrencies under heavy selling pressure yet again today, with most of the majors violating key short-term support levels today in early trading. The rally failed to carry the coins to new swing highs during the weekend, with Bitcoin being stopped by the $9000-$9200 zone yet again.
The lows from last week are still below the current levels, but the short-term outlook deteriorated substantially, as the broad declining trend is still intact in the segment. Correlations are also elevated with all of the top coins being in deep the red, and with the overwhelming majority of the smaller currencies following the market lower.
BTC/USD, 4-Hour Chart Analysis
Bitcoin is trading near the $8000 level currently after the dip in early trading, as the $8400 support failed to hold up, triggering a downgrade to neutral in our trend model. Long-term investors could still add to their holdings here, while traders shouldn’t enter new positions. The support zone near $7650 is now in focus again, with another strong zone below between $6750 and $7000.
ETH/USD, 4-Hour Chart Analysis
Ethereum continues to be the main concern for bulls here, as the second largest coin is still stuck in a steep short-term downtrend, violating the $500 support level today. Below that level, the currency is on a short-term sell signal, while the long-term setup is still oversold, and investors could still add to their holdings. Support is now found at $450 and $400, while resistance above $500 is ahead near $575.
Selling Dominates Across the Board
XRP/USDT, 4-Hour Chart Analysis
Altcoins are all falling in a concerted fashion today, still confirming the broader downtrend, despite the oversold long-term momentum readings. Ripple is relatively weak again, dipping below $0.63, and approaching the key $0.58 level today, also triggering a short-term selling signal. The recent swing low near $0.54 is also providing key support here, while further resistance is ahead at $0.85, with a weaker level found near $0.73.
The rest of the majors are also trading below short-term support, with only a few coins showing some signs of strength, including last week’s leaders Dash, IOTA, and Stellar. ETC, NEO, EOS, and Cardano are among the relatively weaker coins, but all of them are still above last week’s lows, and for now the long-term buy signals remain intact.
Stay tuned for our long-term technical analysis coming out later on today.
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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.