Crypto Update: Coins Pop As Risk Assets Surge Higher

The major coins are all in the green before the U.S. open as global financial markets are enjoying an oversold rally in the wake of yesterday’s crazy session. Global governments and central banks continue to announce further steps to combat the COVID-19 crisis, and now, at least, they succeeded in causing a relief rally, which has been led by gold. BTC is also enjoying inflows due to the inflationary steps of the Fed and Germany, while altcoins also popped higher, even though their technicals remain weaker than the most valuable BTC’s.

Our trend model remains mixed on the short-term time-frame, but with still no upgrades due to the current rally attempt, and the coming days will be crucial for the segment. The post-crash consolidation period is likely nearing its end, with volatility still contracting, in general, and without a clear move out of the short-term ranges, the coins might be facing a retest of the lows in the coming weeks.

BTC/USD, 4-Hour Chart Analysis

BTC remains much stronger than its peers from a technical perspective and thanks to today’s rally, it is once again testing its declining long-term trendline. The coin is also very close to forming a higher swing low, which would confirm a new short-term uptrend, and could lead to a quick rally to the $7,350 level or even the recent breakdown level near $7,600.

BTC is on a short-term buy signal, while being on a long-term sell signal in our trend model, with support found near $6,500, between $6000 and $6100 and near $5850, and with resistance is ahead near $6,750, $7,000, $7350, and $7,600.

ETH/USD, 4-Hour Chart Analysis

ETH has been showing signs of relative strength in the past 24 hours leaving the vicinity of the $130 level and getting close to a renewed buy signal. The coin is also approaching the upper boundary of its short-term trading range, and a breakout would be a huge plus for the whole segment, even though most of the smaller altcoins remain in bearish patterns.

ETH is now on sell signals on both time-frames in our trend model, with major support zones found between $130 and $135, near $120, and between $95 and $100, and with resistance zones ahead near $145 and $160.

LTC Flirts With Buy Signal As XRP Faces Stiff Level

XRP/USD, 4-Hour Chart Analysis

XRP continues to be very weak from a technical perspective, being stuck near the midpoint of its post-crash consolidation range, and being clearly below the key $0.1650 resistance level. The coin is also well below its declining long-term trendline, and while a segment-wide rally could lead to a new short-term uptrend, traders should stay away from entering new positions in XRP.

Our trend model is still on sell signals on both time-frames, with support zones found near $0.15, $0.13, and $0.11, and with resistance zones ahead near $0.1650, $0.1750, $0.19, and $0.20.

LTC/USD, 4-Hour Chart Analysis

LTC has been hovering above the $40 price level today in early trading, moving away from the key $38 level and getting close to a renewed buy signal. The coin is also fighting to stay above its previously dominant long-term trendline amid the broad rally, and a breakout, especially if LTC is joined by ETH, could be a very bullish short-term sign for the segment.

LTC is on sell signals on both time-frames in our trend model, with support zones found near $38, $34.50, $30, and $26.50, and with resistance zones ahead near $44, $51, 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.