Crypto Update: Coins Pull Back As War Fears Ease

The major cryptocurrencies are all lower following what has been a tumultuous 24 hours for the segment and for financial markets, in general. Overnight, safe-haven and alternative assets surged higher in the wake of the missile attacks by, Iran which targeted bases housing US troops, but as the Persian state and the US are both seem to be steering away from an open conflict, the overnight trends reversed in US trading with a vengeance.

The top coins all retreated below key technical levels amid the reversal, with BTC dropping back to the $8,000 level, and the prior leader of the move XRP falling below $0.21. Since the bearish long-term trends are still intact in the segment, traders should remain defensive here, even though our trend model remains upbeat from a short-term perspective thanks to the recent rally. The coming days will be crucial for bulls, as a quick bearish reversal could negate the technical progress of the past few days.

BTC/USD, 4-Hour Chart Analysis

BTC briefly topped its declining long-term trendline in the past 24 hours and while the coin couldn’t hold on to its gains, it remains well above its recent post-crash trading range. The coin continues to be above both the $7,600 and $7,800 support levels as well, but the decisive and volatile reversal is a negative sign from a broader perspective. The long-term downtrend remains clearly intact in the coin’s market and traders should remain cautious despite the counter-trend rally.

BTC is now on a short-term buy signal in our trend model, while still being on a long-term sell signal, with support zones now found near $7,800, $7,600, $7,400, and $7,000, and with resistance ahead near $8,200, $8,400, and $8,650.

ETH/USD, 4-Hour Chart Analysis

ETH spiked above the $145 level overnight, before quickly giving back most of this week’s gains, and the coin is now close to reentering its post-crash range, which would be a negative sign for all altcoins. That said, the short-term trend is still upbeat, and the $135 and $130 levels continue to serve as strong support levels for ETH, even as the broader downtrend is still expected to resume.

Our trend model is on a short-term buy signal while still being on a long-term sell signal, with major support zones found near $135, $130, $120, and $100, and with resistance zones ahead near $145, and $160.

XRP Remains Under Pressure As LTC Pump & Dumps

XRP/USD, 4-Hour Chart Analysis

XRP is now back below the key long-term $0.21 level despite yesterday’s bounce and the coin is trading well below its weekly high, possibly pointing to yet another failed short-term rally attempt. From a broader perspective, XRP is among the weakest majors, and even though it remains above its recent consolidation range, the bear market is likely to continue.

XRP is on a short-term buy signal while still being on a long-term sell signal in our trend model, with support zones now found near $0.20, $0.1930, and $0.1750, and with resistance zones ahead near $0.21, $0.23, and $0.2475.

LTC/USD, 4-Hour Chart Analysis

LTC hit its highest level since late-November overnight before turning sharply lower together with the broader market. The coin is looking ready to re-test the $44 support level which has been a crucial pivot in recent months, and despite its recent relative strength, LTC’s long-term weakness makes a failed rally attempt likely.

LTC is now on a short-term buy signal while still being on a long-term sell signal in our trend model, with support zones now found near $44 and $38, and with resistance zones ahead near $51 and $56.

Featured image from Shutterstock

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.