Crypto Update: Coins Under Pressure Following Another Bearish Monday
The major cryptocurrencies had a bearish start to the week, as it has been the case in most cases lately, and despite the relative strength that BTC showed in the second half of last week, the segment continues to be under clear selling pressure. The weekend rally attempt failed across eh board and now even the most valuable coin is back under its short-term support level, as the bearish consolidation pattern remains dominant in its market.
The top coins are all closer to their initial support zones today, and while bulls avoided a major technical breakdown, for now, the odds of another downswing continue to rise as the consolidation matures. LTC is now very close to a breakdown, and since it has been showing the way for the segment during the current bearish cycle, the downtrend could soon resume. Bulls would need a decisive and broad short-term trend shift to have a chance of holding the recent swing lows.
BTC/USD, 4-Hour Chart Analysis
BTC dipped back below $7,4000 yesterday, confirming the failed rally attempt, and although the coin has been stable since yesterday’s late-session sell-off, the coin lost its clear-cut relative strength. As BTC failed to make technical progress in recent days, its outlook remains gloomy, and the broader declining trend is in no danger.
BTC is still on sell signals on both time-frames in our trend model, with support zones now found near $7,000, $6,750, and $6500, and with resistance ahead near $7,400, $7,600, $7,800, and $8,200.
ETH/USD, 4-Hour Chart Analysis
ETH got back to the lower boundary of its narrow trading range after failing near the $150 level yesterday, and the coin is once again threatening with a move below $145 as well, which would open up the way to the next major support zone near $130. That said, volatility remains low in ETH’s market and even though the quiet picture could quickly change, the prior swing low is in no immediate danger here, despite the increasing downside risks.
Our trend model remains on sell signals on both time-frames, with support zones found near $145 and $130, and with resistance zones ahead near $160, between $180 and $185, and near $200.
XRP And LTC Drift Lower As bears Remain In Control
XRP/USD, 4-Hour Chart Analysis
XRP failed to sustainably move above the key long-term $0.23 level, despite the test of the resistance zone, and the coin gave back a large part of its recent gains yesterday. XRP is still well above its prior swing low despite the dip, but from a broader perspective, the counter-trend move is still only a blip in the ongoing damaging bear market.
XRP is still on sell signals on both time-frames in our trend model, with support zones found near $0.21 and $0.20, and with resistance zones ahead near $0.23, $0.2475, $0.26, and $0.28.
LTC/USD, 4-Hour Chart Analysis
LTC is now only a hair above the $44 support level while also being very close to its prior swing low, and its persistent relative weakness points to a technical breakdown in the coming days. LTC is also trading within its declining short-term trend channel, despite the rather lengthy consolidation, and that also confirms the strong long-term downtrend in its market.
LTC remains on sell signals on both time-frames in our trend model, with support zones found near $44 and $38, and with resistance zones ahead near $51, $56, 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.