Crypto Update: Coins Stage Rally on Regulatory Relief

The altcoin-lead decline could finally be over, at least short-term, with all of the majors being up by more than 10% off the lows, and with Bitcoin still showing encouraging relative strength. Regulatory fears eased substantially, as the feared crackdown at the G-20 meeting didn’t happen, and Bank of Japan Governor Kuroda actually praised cryptocurrencies today that accelerated the BTC-led surge.

While the most valuable coin is now on a short-term buy signal, breaking the downtrend line that has been intact for two weeks, Ethereum remains the biggest drag on the segment, still showing relative weakness, trading well below its respective trendline.

BTC/USD, 4-Hour Chart Analysis

Bitcoin is back above the previous swing low at $8400, and the weekend price action, a failed break-down on heavy volume, qualifies as a bear-trap that could be the start of a powerful rally. Strong resistance is ahead between $9000 and $9200, at $10,000 and $10,500, while support below the prior low is at $7650.

ETH/USD, 4-Hour Chart Analysis

Ethereum continues to trade under strong selling pressure despite today’s bounce, as the coin is still stuck below the February low, although it recovered above the $500 level. The short-term sell signal is intact, while long-term investors could still accumulate the coin. Primary support is at $500, while strong resistance is ahead at $$575, $625, and in the key $740-$780 zone.

Buy Signals Popping Up among Altcoins

Several altcoins are showing short-term strength after the lengthy bearish period, although the segment is still not out of the woods, as the broader declining trend is intact in most of the coins, and there are notable laggards besides Ethereum as well.

LTC/USD, 4-Hour Chart Analysis

Litecoin continues to show robustness, despite the weekend dip below $150, as the quick recovery and the bullish shift in momentum justifies a buy signal. The currency still faces strong resistance in the $170-$180 area, and the corrective downtrend remains intact, but the risk-reward ratio is now favorable for traders.

ETC/USD, 4-Hour Chart Analysis

Ethereum Classic also gave a short-term buy signal, breaking out of its steep downtrend, similarly to IOTA and Monero while NEO, Ripple, Cardano, Stellar, and Dash are still among the relatively weaker majors, still on a sell or neutral signal from a short-term perspective.

So, while the overall picture is much better after the strong bounce, the segment remains mixed, and volatility may still return before a broad-based rally.

Stay tuned for our detailed technical analysis later on today.

Featured image from Shutterstock

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.