Crypto Update: Coins Settle Down Again As Supports Hold

The major cryptocurrencies managed to avoid a short-term technical breakdown today, despite yesterday’s broad sell-off in the segment. The top coins all settled down near key price levels, with BTC hovering around $9,200, ETH trading between $180 and $185 and with XRP being stuck just below the $0.30 level. Today’s flat session means that the short-term consolidation patterns remain intact in the segment, but no technical progress has been made.

The broader picture remains clearly bearish for the top coins, and even though BTC is holding on to most of its gains form the weekend, altcoins are relatively weak and we still expect the bear market to resume. The current should still be considered as a counter-trend move, and traders should only enter small positions in the relatively stronger coins, while applying strict risk management rules.

BTC/USD, 4-Hour Chart Analysis

The $9,200 level is clearly at the center of attention in BTC’s market, and thanks to today’s stability, bulls still have the hope that the rally attempt will continue. A dip below the short-term support near $8,650 would be a very bearish sign, but a rally above the long-term declining trend could open up the way for a long-term upgrade.

The coin is still on a long-term sell signal and a short-term buy 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 has been trading within the key $180-$185 support/resistance zone throughout today’s session, with the exception of an early spike below it, avoiding a potentially damaging technical breakdown. The coin remains relatively weak compared to BTC, and while a recovery rally and a short-term buy signal is still in the cards, downside risks remain prominent here.

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 And LTC Drift Sideways In Choppy Trading

XRP/USD, 4-Hour Chart Analysis

XRP remains stuck in a narrow range, and while today’s session gave a chance to test the $0.30 level, the coin failed to capitalize on that. XRP could still break out on the upside from its consolidation pattern, but given the clearly bearish long-term technicals traders should remain defensive here, and only join a clear move above resistance.

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 had a very quiet and slightly bullish session, as it has been edging higher towards the $60 level,  showing relative strength compared to the top altcoins. The coin is in a safe distance from the $56 support level, for now, but we still expect a move back towards its recent lows, as a failed rally attempt seems very likely in light of the long-term setup.

LTC remains on sell signals on both time-frames in our trend model, with resistance zones now found near $51 and $44 and with the next major resistance zone ahead near $64.

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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.