Crypto Update: Coins Remain Under Pressure as Bitcoin Tests $11,300 Again

While most of the major cryptocurrencies are in the red yet again, the characteristics of the market changed somewhat compared to the recent days, as Bitcoin is also under pressure and some of the weakest coins are showing short-term stability. BTC fell as low as $11,200 in the low-volume weekend environment but it stabilized near the key $11,300, keeping it short-term uptrend intact, which is crucial for the generally bearish segment.

That said, should the most valuable coin join the sell-off in earnest, the top altcoins, which are currently hanging on a thread above key support levels, could be in a lot of trouble. Ethereum got close to testing $200, Litecoin briefly dipped below $85, while Ripple is still in a very dangerous position as well even as it managed to bounce back above $0.30 in the face of the segment-wide pressures.

Despite the small improvements in price action among the top altcoins, the overall picture remains clearly bearish in the segment, and bulls would need much more than the occasional isolated rally attempts to take a more constructive stance. While our trend model is still on short-term buy signals in the case of BTC and XMR, traders should remain defensive here, as a concerted move below support could lead to a violent sell-off.

BTC/USD, 4-Hour Chart Analysis

Bitcoin lost some if technical advantage today in comparison to the top altcoins, but even after today’s dip it’s in a much better technical position then most of its peers. The key $11,300 level is holding up the coin for now, but traders should keep in mind that should the short-term trend switch bearish, the momentum change, together with the bearish market-wide pressures could cause a sharp drop in BTC’s market.

So while our trend model is on a short-term buy signal, strict risk management rules should still be applied. Traders could still hold on to their short-term positions, and below $11,300, further support zones are found near $10,000, $9,200, $8,400, and $8,200, while the next major resistance zones are ahead near $13,000 and at the prior rally high near $14,000.

 ETH/USD, 4-Hour Chart Analysis

Ethereum still failed to show any sign of strength, and as it’s getting closer and closer to the $200 support and its previous swing low, it could be one of the triggers of a major technical breakdown in the segment, bulls would need a quick change in price action to avoid another swing lower, and for now, traders should stay away from ETH, as downside risks remain very high.

Our trend model is still on clear sell signals on both time-frames, and the key $230 resistance now looks very distant, so an upgrade is unlikely in the coming period, as only sustained move above that level would change the short-term technical setup. Below $200 further support zones are found near $180, and $160, while above $230, resistance levels are ahead near $260 and $275.

Litecoin and Ripple Bounce Higher but Risks Remain High

XRP/USD, 4-Hour Chart Analysis

While Ripple has been the clear leader on the downside in recent days, today, the coin is outperforming the broader market after a spike towards the key $0.28 level in early trading.  XRP is still under clear selling pressure, from a broader perspective, and we expect the current rally attempt to fail, as did all the previous spikes.

The coin still on clear sell signals on both time-frames in our trend model, and odds continue to favor a bearish continuation in the coming weeks, and in light of the recent price action in the segment, the breakdown could happen as soon as in the coming days. Below $0.28, strong support is found near $$0.26, while resistance is ahead near $0.32, just above $0.33, and near $0.3550 and $0.3750.

LTC/USD, 4-Hour Chart Analysis

The $85 support level is clearly at the center of attention in LTC’s market, and although the coin violated the level in the past 24 hours, it avoided a key technical breakdown, for now. The coin is still stuck in a declining short-term trend, and while today’s stability could be an early indication of another rally attempt the segment-wide trends suggest a bearish outcome, and traders should still not enter new positions here.

Our trend model is still on clear sell signals on both time frames, and the odds of an upgrade are low following the recently failed breakout, even though a broad rally in the segment could still carry LTC above $100. Below $85, further support is still found near $75 and $64, with resistance zones are also ahead between $110 and $112 and near $125.

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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.