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/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.