Crypto Update: Coins Turn Choppy Following Stellar Ramp

The major cryptocurrencies settled down somewhat today after surging to fresh multi-month highs yesterday. Despite the overbought short-term momentum readings and the lofty gains of the past few days, the top altcoins pulled back only slightly, while the still not overbought BTC even scored a marginal new high.

The advancing short-term trend remains intact in the sector, with a few majors now also on tentative long-term buy signals, but it’s still very early to conclude a major trend shift in the segment. All eyes will be on the top 3 coins, as despite the stellar short-covering rally in the markets of some of the smaller coins, bulls are still facing considerable downside risks.

BTC/USD, 4-Hour Chart Analysis

BTC has been holding up well today in the choppy and active trading environment and even briefly topped $8,900 amid the signing of the trade deal between China and the U.S. The coin remains in a well-defined short-term uptrend, while trading above its broadly declining long-term trendline. While a failed breakout and a sharp reversal are still in the cards here, BTC’s current stability is a very positive sign for bulls.

BTC is now on buy signals on all time-frames in our trend model, with support zones found near $8,600, $8,400, $8,200, and $7,800, and with resistance ahead near $9,200, $10,000.

ETH/USD, 4-Hour Chart Analysis

While ETH turned more volatile than BTC in the wake of yesterday’s breakout, it managed to hold up above the key long-term support level near $160. The coin remains clearly overbought from a short-term momentum perspective, despite today’s sideways drift. While further gains are possible here, odds favor a pullback, especially given the coin’s bearish long-term technicals.

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 And LTC Drift Sideways In Choppy Trading

XRP/USD, 4-Hour Chart Analysis

XRP hasn’t made technical progress today, despite its relatively modest rally yesterday, and the coin remains one of the weakest majors from a long-term standpoint. The short-term uptrend is intact in the coin’s market, and a test of the $0.26 levels remains possible in the coming days, even considering XRP’s relative weakness.

XRP is on a short-term buy signal while still being on a long-term sell signal in our trend model, with support zones now found near $0.23, $0.21, $0.20, and $0.1930 and with resistance zones ahead near $0.2475, and $0.26.

LTC/USD, 4-Hour Chart Analysis

While LTC is severely overbought according to the key short-term momentum indicators, it held up above the $56 support today, apart from a brief bearish spike. The coin is in a clear short-term uptrend, similarly to its closest peers, and its relative strength suggests that it will likely continue to lead the rally even if the long-term trend change is far from being confirmed.

LTC is now on a short-term sell signal and a long-term buy signal in our trend model, with support zones now found near $56 and $51, and with resistance zones ahead near $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.

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.