Crypto Update: Coins Pull Back As BTC Dips Below $10,000

While the major cryptocurrencies all lost ground on the first session of the week and some of them broke below their steep short-term uptrends, the underlying bullish trends remain intact in the segment. Some of the top coins are still overbought from a short-term perspective and the coming days could see a deeper pullback due to the lofty gains of the past weeks, but the long-term trend shift seems safe.

Our trend model is still dominantly bullish on both time-frames, and thanks to the pullback, the likes of XRP and Eth got closer to a renewed short-term buy signal. On the other hand, XMR got downgraded because of the overbought readings, but all in all, price action remains encouraging in the segment, and we still only see evidence of a healthy bullish rotation between the coins.

BTC/USD, 4-Hour Chart Analysis

BTC failed to maintain its breakout above the $10,000 level despite the brief period of relative strength, and the coin is now back below the key long-term resistance. That said, the technical damage has been limited today and while the coming weeks could see a deeper correction, the short-term uptrend is intact, and the coin is not overbought according to the key short-term momentum indicators.

BTC is still on buy signals on both time-frames in our trend model, with support zones now found near $9,200, $8,600, and $8,400, and with resistance ahead near $10,000, $11,300, and $13,000.

ETH/USD, 4-Hour Chart Analysis

ETH continues to be stuck below the $230 level, consolidating its recent lofty gains, and today, the coin broke below its steepest rising trendline. ETH is working its way through the overbought short-term momentum readings that triggered a downgrade in our trend model, but it remains overbought, and traders should still not enter new short-term positions.

Our trend model is on a neutral short-term signal while still being on a long-term buy signal, with major support zones found near $200, between $180 and $185, and near $160, and with resistance zones ahead near $230 and $260.

XRP And As LTC Follow Broader Market Lower

XRP/USD, 4-Hour Chart Analysis

XRP continues to trade in a choppy and relatively wide consolidation range, and it is back below the key $0.28 level that has been in focus in its market for almost a week now. While the coin cleared its overbought short-term momentum readings, it needs to show technical strength for a renewed buy signal, especially in light of its relative weakness and the proximity of its previously dominant declining long-term trendline.

Our trend model is on a neutral short-term signal while still being on a long-term buy signal, with support zones found near $0.26 and $0.2475 and with resistance zones ahead near $0.28, and $0.30.

LTC/USD, 4-Hour Chart Analysis

LTC also failed to extend and solidify its breakout above the key $72.50-$75 resistance zone and it fell below its steeply rising short-term trendline, it remains in a bullish trend. The coin hasn’t broken below its most recent swing low, and whil ea deeper correction could be ahead, it remains upbeat from a technical perspective, despite the weak momentum of the recent breakout attempt.

LTC is on buy signals on both time-frames in our trend model with support zones now found near $72.50, $64, $56, and $51, and with resistance zones ahead near$75, $85, and $90.

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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.