Crypto Update: Coins Threaten Support Levels as Covid-19 Crisis Deepens

The major cryptocurrencies have all been trading under clear selling pressure today, as even though traditional financial markets are still closed, the negative virus-related headlines suggest that another gloomy Monday is ahead of investors. The large-scale lockdowns in Europe and the COVID-19’s quick spread in the U.S. all point to continued major economic disruptions and possible forced liquidations across asset classes as market participants continue to scramble for cash.

While the huge fiscal and monetary packages should favor cryptos in the long run, emotions and liquidations will likely lead to wild swings in the coming period, making short-term trading risky. That said, the technical picture is still mixed, and our trend model remains bullish for several majors from a short-term perspective, despite today’s dip.  Traders should still only enter smaller speculative short-term positions though as downside risks remain high.

BTC/USD, 4-Hour Chart Analysis

BTC continues to be very strong from a short-term perspective, clearly holding up above the key $5,850 level and remaining on a short-term buy signal. While most of the altcoins failed to live up to BTC’s strength, the coin is holding up above its prior consolidation range, and bulls can still hope that a new short-term uptrend will be confirmed in the coming days, despite the downside risks.

BTC is on a short-term buy signal while being on a long-term sell signal in our trend model, with support found between $6000 and $6100 and near $5850, and with resistance is ahead near $6,500, $6,750 and $7,000.

ETH/USD, 4-Hour Chart Analysis

ETH dipped below the $130 support level today triggering a sell signal in our trend model. The coin is once again trading its post-crash consolidation range, still showing relative technical weakness. Volatility will likely pick up again as the traditional financial markets reopen for trading, and the weak rally attempt means that ETH will be vulnerable in the coming days.

ETH is now on sell signals on both time-frames in our trend model, with major support zones found near $120, and between $95 and $100, and with resistance zones ahead between $130 and $135 and near $145 and $160.

LTC Fails At $38 As XRP Threatens $0.15 Again

XRP/USD, 4-Hour Chart Analysis

XRP is trading just above the $0.15 level in the wake of today’s dip, and its relative weakness continues to be apparent, despite its stability during the crash. XRP now gave back all of its gains from its recent rally attempt making, at least, a retest of its low very likely. The coin is now neutral from a short-term momentum perspective, but the coming days will likely see volatile swings again, so short-term traders should stay away from XRP.

Our trend model is still on sell signals on both time-frames, with support zones found near $0.15, $0.13 and $0.11, and with resistance zones ahead near $0.1650, $0.1750, $0.19, and $0.20.

LTC/USD, 4-Hour Chart Analysis

LTC failed to stay above the $38 level amid the increasing selling pressure, and it declined by the most among the top coins, percentage-wise. The coin also got downgraded in our trend model, and even though it still well above the $34.50 level it is now back in its consolidation zone, warning of a looming retest of its recent low.

LTC is now on sell signals on both time-frames in our trend model, with support zones found near $34.50, $30, and $26.50, and with resistance zones ahead near $38, $44, $51, and $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.