Crypto Update: Coins Stage Rebound Following Early Scare
The cryptocurrency segment had a two-faced session, as even though the day the major coins all dropped sharply in early trading violating key support levels in the process, bulls quickly took control of the market. The top coins all recovered, trading in the green following the U.S. close, and while the segment is still not out of the woods, meaning that we still can’t conclude that we have a swing low at our hands, a sharp bearish reversal has been averted, for now.
That said, the corrective short-term patterns remain intact in the markets of the largest coins, and our trend model remains overwhelmingly bearish from a short-term perspective. Should the top coins build up bullish momentum here, a wave of buy signals could be close, but given the mixed long-term technicals, traders should remain defensive here and wait for a confirmed swing low.
BTC/USD, 4-Hour Chart Analysis
BTC got very close to $8,200 after it fell below the $8,600 and $8,400 support levels yesterday, but the coin got saved from a more damaging sell-off. BTC remains well above the previously dominant long-term trendline, and with that, the short-term trend can still continue, which could lead to the confirmed long-term trend change.
BTC is on a short-term sell signal and long-term buy signal in our trend model, with support zones found near 8,400, $8,200, and $7,800, and with resistance ahead near $8,600, $9,200 and $10,000.
ETH/USD, 4-Hour Chart Analysis
ETH bounced back above the key long-term $160 support/resistance level after touching its rising short-term trendline today, keeping bulls’ hopes alive. The coin is still stuck below its declining long-term trendline, though, and the coming days will be crucial for the fate of the rally attempt. The short-term correction pattern is intact in ETH’s market and bulls need to see technical strength before reentering its market.
Our trend model is now on sell signals on both time-frames, with major support zones found near $160, $145, $135, and $130, and with resistance zones ahead between $180 and $185 and near $200.
XRP Continues To Lag As LTC Touches Key Zone
XRP/USD, 4-Hour Chart Analysis
XRP remains very weak from a technical perspective as it failed to get anywhere close to the key $0.23 level despite the segment-wide recovery. The coin is also stuck below its advancing short-term trendline, and odds continue to favor another leg lower in the ongoing bear market, even in light of the recent rally.
XRP is on sell signals on both time-frames in our trend model, with support zones now found near $0.21, $0.20, and $0.1930 and with resistance zones ahead near $0.23, $0.2475, and $0.26.
LTC/USD, 4-Hour Chart Analysis
LTC touched the key confluence zone near the $51 support, as we expected, and bulls successfully defended the zone. The coin remains above the rising short-term trendline and the previously dominant declining long-term trendline as well. That said, the coming days could still see a sharp reversal, so traders still shouldn’t enter new positions here.
LTC is on a short-term sell signal and a long-term buy signal in our trend model, with support zones now found near and $51 and $44, and with resistance zones ahead near $56, $64, and between $72.50 and $75.
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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.