Crypto Update: Coins Remain Under Pressure After Bloodbath
Crypto bulls had their worst day in several months yesterday, as, after the failure of the counter-trend rally among the major altcoins, a broad and destructive sell-off followed. On another negative note, BTC, which has been stable even in the face of the volatile swings in altcoins, also plunged below key support, triggering a wave of sell orders and giving another boost to the altcoin bear market as well.
Most of the major coins hit new multi-month lows, with BTC dipping below $8,000, ETH spiking below the $160 support, Litecoin testing the $56 support, and XRP briefly taking out its panic low from August. While the market stabilized after the runaway decline, the majors remain under selling pressure, and there is no indication that a failed breakdown pattern would, meaning that the bear market will likely continue and downside risks remain prominent.
BTC/USD, 4-Hour Chart Analysis
After triggering a short-term sell signal by violating the lower boundary of its broad triangle consolidation pattern, BTC also took out the key $9,200 support, hitting a fresh three-month low. The breakdown is a huge blow for the whole segment, especially together with the new lows in the markets of the top altcoins, and barring a quick reversal, the coin might face further steep losses in a matter of days.
The coin is on sell signals on both time-frames in our trend model, with support zones found near $8,400 and $8,200, and below that between $7,600 and $7,800, and with resistance zones ahead near $9,200, $10,000, and $11,300.
ETH/USD, 4-Hour Chart Analysis
ETH also hit a new multi-month low yesterday, getting close to $150 level, before a market-wide rebound, and now the coin is hovering around its prior swing low from August. With that, it’s actually among the relatively stronger majors from a technical perspective, but it also remains under clear selling pressure in the wake of the crash.
Our trend model is on clear sell signals on both time-frames, with support zones now found below the $180 and $185 zone found near $160, and with resistance above $200 ahead near $230 and $260.
Litecoin and Ripple Hit New Lows Amid Carnage
XRP/USD, 4-Hour Chart Analysis
After yet another failed rally attempt XRP outright collapsed yesterday, spiking below its recent panic low, and hitting a new ear market low. The coin has been relatively strong during today’s bounce, but from a broader perspective, it remains the weakest major, and downside risks remain very high here.
The coin is on sell signals on both timeframes in our trend model with support now found near $0.23 and with resistance levels ahead near $0.2475, $0.26, and $0.28.
LTC/USD, 4-Hour Chart Analysis
Litecoin has been leading the segment-wide plunge in recent days, in line with its persistent relative weakness, and the coin produced the weakest post-crash bounce as well, confirming the technical breakdown. LTC has been hovering around the support zone near the $56 price level, and a move towards the next major zone near $51 is now very likely.
The coin is firmly on sell signals on both time-frames in our trend model, with further resistance zones above $56 ahead near $54 and $75, and with major support zones now found near $51 and $44.
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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.