Crypto Update: Coins Pull Back With Trade Deal In Sight

The major cryptocurrencies are all trading lower today amid a global surge in risk assets that was triggered by the optimism regarding the chances of a trade deal between the U.S. and China. The major coins are all in the red just ahead of the U.S. market close, but even though the dip prevented a move out of the still dominant short-term consolidation patterns, the technical damage is limited and volatility remains relatively low in the segment.

After a brief spike higher yesterday, XRP lost the most ground among the majors but the recently bullish LTC also got hit hard, while BTC and ETH have been relatively stable. The long-term setups are little changed despite the increased trading activity, with the broader downtrends still being intact. Traders should still remain defensive here, even as the counter-trend move could still resume, and the prior lows are still safe.

BTC/USD, 4-Hour Chart Analysis

BTC is trading right at the key $9,200 level amid the broad decline in the segment, but the coin is still holding up well inside its post-surge range. The direction of the next crucial swing is still undecided, and the coin is still on a short-term buy signal thanks to its stability. That said, the broader declining trendline is drawing closer, and the

The coin is still on a long-term sell signal in our trend model, with further support zones found near $8,400, and $8,200, and with resistance ahead near $10,000.

ETH/USD, 4-Hour Chart Analysis

ETH once again failed to score a sustained new swing high and thus, it hasn’t triggered a swhort0-term buy signal despite its recent surge. The coin is trading just above the key $180-$185 support/resistance zone that now has been in focus for months. The outlook remains bearish for ETH, as the broader downtrend is likely to continue, even though a broad rally in the segment could still lead to a short-term trend change.

Our trend model is still on sell signals on both time-frames, with further support zones now found near $160, $145, and $130, and with resistance zones ahead near $200 and $230.

XRP Pump & Dumps As Litecoin Fails At $64

XRP/USD, 4-Hour Chart Analysis

XRP spiked above the resistance zone near the $0.30 price level yesterday in late trading, but yet again, it failed to maintain its bullish momentum, dropping back below $0.28 today. The coin settled down above that support, later on, leaving the short-term consolidation pattern intact. While the failed move is another bearish sign, the counter-trend rally could still resume, even though the long-term setup is clearly bearish.

XRP is still on sell signals on both time-frames in our trend model, with support zones now found near $0.28, $0.26, and $0.2475, and with resistance zones ahead near $0.30, and $0.32.

LTC/USD, 4-Hour Chart Analysis

LTC has failed to move past the $64 resistance level, so far, despite testing it yesterday, and today, it has been among the weakest majors. From a long-term perspective, LTC is still one of the weakest majors, even following the recent period of relative strength, and traders should wait until a short-term trend change is confirmed before considering new positions in the coin.

LTC remains on sell signals on both time-frames in our trend model, with resistance zones now found near $56, $51, and $44 and with the next major resistance zone ahead near $75.

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.

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.