Crypto Update: Coins Settle Down After Crazy Monday

The cryptocurrency segment has been relatively quiet since yesterday’s spike and the subsequent pullback, with the majors settling down above their pre-surge levels, but well below the highs hit amid Tether’s slump.

Bitcoin has been among the stronger coins while Ripple has been the most active top coin, as bulls and bears are fighting for control after yesterday’s move. Technically speaking, the setup in most of the top coins is unchanged, and given the nature of the Monday’s spike, still no upgrades have been triggered in our trend model.

USDT/USD, 4-Hour Chart Analysis

Tether is still trading with a meaningful discount today, but the market calmed down, as the stablecoin got back closer to its peg. With the segment ready to replace the dominant stablecoin should the dislocation persist, we don’t expect a sustained impact on the market.

That said, the broader bearish trends in the segment remain in place, and the top coins need to show evidence of buying strength before we could advise a bullish approach. The next few session will likely decide the fate of the spike, but we remain defensive until sings of follow-through in the sector.

BTC/USD, 4-Hour Chart Analysis

Bitcoin is trading between the $6275 support and the $6500 resistance, still on a short-term sell signal and on a neutral long-term signal in our trend model. The most valuable coin is still stuck below the previously dominant broad triangle pattern and that suggests that a test of the support zone near $6000 is likely in the coming weeks, with a possible dip to the key long-term zone near $5850.

On the other hand, a less likely move above $6750 could set up a bear-trap trade, and a new short-term uptrend, but for now, sellers are still in control of the market, further resistance ahead near $7000.

Altcoins Flat Despite Rally Attempts

XRP/USDT, 4-Hour Chart Analysis

While Ripple moved above the $0.46 resistance several times in the past 24 hours, for now, the coin hasn’t been able to hold above the crucial level, even as the break-out from the triangle consolidation pattern is still “on”. The coin is also clear of the lower boundary of the long-term support zone near $0.42, and from a technical standpoint, it’s still the most positive major.

That said, until a short-term uptrend is established, traders shouldn’t enter new positions, with the segment-wide trends still being negative, and with this week’s rally being suspicious. Further support levels below $0.42 are found near $0.375 and $0.35, while resistance is ahead near $0.51 and $.0.54.

ETH/USD, 4-Hour Chart Analysis

Ethereum is trading slightly above the $200 level currently, but even after yesterday’s spike, the coin remains in a clearly bearish short-term setup, while the long-term trend is also negative. Odds favor a move towards the $170 bear market low in the coming weeks, with further support zones near $180 and $160.

ETH faces strong resistance near $235 and $260, with two strong declining long-term trendlines converging between those two levels too and traders and investors should stay away from the coin until a confirmed trend change.

XMR/USDT, 4-Hour Chart Analysis

Monero is trying to hold its ground above the $108 support/resistance level after briefly spiking above the declining short-term trendline yesterday, but the short-term technicals are still negative, even as the coin avoided a long-term downgrade.

XMR needs to stay above $100 to maintain the neutral long-term signal otherwise a test of the bear market low near $80 would become very likely, with further strong resistance zones are ahead between $120 and $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.

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.