Crypto Update: Coins Pull Back As Bitcoin Fails to Break Out

Bears took control of the cryptocurrency segment today, but tracing remained relatively calm even as the majors all failed to build up bullish momentum. BTC and ETH couldn’t capitalize on yesterday’s small gains, and the top altciins are still under clear selling pressure, with the overhead resistance levels limiting every rally attempt in the segment.

With all eyes on next week’s Fed meeting, traditional financial markets were also quiet ahead of the weekend, and while yesterday’s easing package by the European Central Bank (ECB) gave a small boost to main digital currencies, the altcoin bear market continues to dominate trading. The outlook for the majority of the top coins remains negative, our trend model is also on sell signals on both time-frames in both cases, and barring a concerted move above resistance, even a sustained counter-trend move is unlikely.

BTC/USD, 4-Hour Chart Analysis

BTC failed to get close to last week’s swing high despite yesterday’s rally, and the coin is clearly trapped in a larger-scale consolidation pattern. The coin is also trading in a short-term volatility compression formation, and until we see a move above the dominant declining short-term trendline, the longer-term outlook remains uncertain.

Our trend model is still on a long-term sell signal, while being on a short-term buy signal. Below the initial $10,000 level, support is found near $9.200, $8,400, and $8,200, while resistance zones are still ahead near $11,300, and $13,000.

ETH/USD, 4-Hour Chart Analysis

ETH turned lower off the lower boundary of the $180-$185 support/resistance zone yet again, and it continues to trade in a bearish consolidation pattern, clearly lagging BTC from a broader perspective. Should the coin break below the short-term pattern in the coming days, altcoins could experience another bout of volatility.

Support zones are found near $160, and $145, while above the $180-$185 zone, resistance is ahead near $200 and $230, and our trend model remains on sell signals on both time-frames.

Ripple Holds Steady As Litecoin Turns Lower Again

XRP/USD, 4-Hour Chart Analysis

XRP edged higher today, but it remains stuck in a very narrow short-term trading range and the coin is still below the key long-term $0.26 support/resistance level. The coming days could be crucial for XRP, and a move below the initial support zone near $0.2475 remains the most likely scenario. The coin remains on sell signals on both time-frames in our trend model, with strong resistance zones ahead near $0.26, $0.28, and $0.30, and with further support found near $0.23

LTC/USD, 4-Hour Chart Analysis

Litecoin continues to show signs of short- and long-term relative weakness, and should today’s dip lead to a larger-scale move, the coin will likely lead the way lower for altcoins. LTC failed to move above $70 in a sustained fashion, and it’s threatening with another leg lower in the ongoing downtrend as soon as the coming days.

Our trend model remains on sell signals on both time frames, with support zones found near $64 and $56, and resistance zones ahead near $75, between $85 and $90, and near $100.

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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.

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.