Crypto Update: Coins Retreat As Bounce Fades

The cryptocurrency segment is having another bearish session following yesterday’s XRP-led bounce that ran into resistance overnight. The sell-off hit ETH and LTC the most, but XRP also shed all of yesterday’s gains, despite spiking briefly above $0.30 before turning lower. BTC is also back below $8,000, and while none of the majors hit new lows, so far, downside risks remain high, and a technical breakdown is likely ahead.

While volatility is still relatively muted in the market, a dip below the prior lows could ignite another spike in volatility and traders should still stay away from entering new positions here. With the smaller coins also being under pressure, the bearish outlook is on solid ground, and without a broad bullish shift, the current downtrend is likely to resume soon.

BTC/USD, 4-Hour Chart Analysis

BTC erased all of yesterday’s bounce overnight, and it got close to its crash low yet again after dipping below $8,000, threatening with a crucial technical breakdown. The ongoing downtrend is still strong, and while the short-term trading range is intact, bears remain clearly in control of the coin’s market.

The coin is still on sell signals on both time-frames in our trend model, with support zones found near $7,800, and $7,600, and with resistance zones ahead near $8,200, $8.400, $8,650, $9,200, and $10,000.

ETH/USD, 4-Hour Chart Analysis

ETH dipped below its weekly low today, and although it avoided a deeper plunge, it remains relatively weak from a short-term technical perspective. The coin is trading well below the key $180-$185 support/resistance zone, and although the next support zone is safe, for now, odds continue to favor a bearish continuation.

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

XRP Fails At $0.30 As Litecoin Retraces Bounce

XRP/USD, 4-Hour Chart Analysis

XRP is still trading in a rising short-term trend despite today’s dip, but the coin failed to extend its rally above the $0.30 level. The segment-wide trends also cast a shadow on the counter-trend move, and while the coin is still holding on to its short-term buy signal, the broader technical setup, and the bearish environment mean that downside risk remains high.

XRP is still on a long-term sell signal in our trend model, with support zones found near $0.28, $0.26, and $0.2475, and with resistance zones still ahead near $0.30 and $0.32.

LTC/USD, 4-Hour Chart Analysis

After bouncing back hard yesterday, LTC gave back most of its gains, falling together with the broader market, and in light of the bearish long-term technicals, a key breakdown is still likely ahead. The coin is trading in a bearish consolidation pattern, with all eyes on the $51 price level, and the coming days could be crucial.

LTC remains on sell signals on both time-frames in our trend model, with resistance zones ahead near $56, $64, and $75, and with major support zones 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.

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.