Crypto Update: Consolidation Continues But Coins Fail To Make Progress

The major cryptocurrencies have been edging lower today in Asian and European trading, despite a failed spike higher, following a quiet and neutral weekend in the segment. The top coins continue to trade in their post-crash consolidation ranges, and while BTC has been showing strength in the back half of last week, it failed to lead the segment higher, even though the likes of XRP and ETH also gained some ground over the weekend.

The broader picture remains bearish and while the recent swing lows are in no immediate danger here, the majors still failed to make meaningful technical progress. That means that another downswing remains the most likely scenario for the coming weeks after the current consolidation period ends. We would need evidence of a broad short-term trend change in order to change the outlook for the segment, as our trend model continues to show an overwhelmingly negative picture.

BTC/USD, 4-Hour Chart Analysis

BTC failed to extend its rally attempt above the $7,600 level, despite several spikes higher over the past few days, and it remains stuck between that level and the $7,400 support. The coin continues to hold above its previously dominant declining trendline, but with the broader picture still being wildly bearish, downside risks remain elevated, even as the counter-trend move could still continue.

BTC is still on sell signals on both time-frames in our trend model, with support zones found near $7,400, $7,000, $6,750, and $6500, and with resistance ahead near $7,600, $7,800, and $8,200.

ETH/USD, 4-Hour Chart Analysis

ETH managed to top the $150 level over the weekend, but the coin failed to make meaningful progress and it remains dangerously close to the key long-term support/resistance zone near $145. ETH is also relatively weak compared to BTC and the weak counter-trend move is likely to end soon, with, at least, another test of the next major support zone near $130.

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 Tests $0.23 Again As LTC Stays Weak

XRP/USD, 4-Hour Chart Analysis

XRP rallied up to the $0.23 level in the quiet environment, and while it couldn’t break out above that in a sustained fashion, it continues to be somewhat stronger than the broader market, strictly from a short-term standpoint. XRP is still very close to its prior low, though, and since it’s very weak from a broader perspective, even in the case of a short-term trend change, downside risks would remain high, and we expect the bear market to resume in the coming weeks.

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 continues to be very weak, technically speaking despite its stability over the weekend, and even though the coin is holding up above the key long-term $44 support level, a key breakdown remains very likely. The downtrend could continue as soon as in the coming days and traders should remain defensive here and stay away from entering new positions.

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.

Featured image from Shutterstock

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.