Crypto Update: Litecoin And Ethereum Shine As Altcoins Pop

The major cryptocurrencies continue to trade in bullish short-term trends, and yesterday, LTC led another push higher in the segment. The coin surged above its prior swing high and the $64 resistance as well, confirming its long-term trend change and giving a huge boost to crypto-bulls’ sentiment. While the other top altcoins failed to mimic LTC’s rally, ETH managed to clear its prior high too, but there are still doubts about the direction of the broader market.

Our trend model continues to be mixed on the long-term time-frame while being overwhelmingly bullish with regards to the short-term signals. With more and more smaller coins joining the rally,  the outlook for the segment continues to improve, but we still can’t rule out a sharp reversal and the resumption of the bear market, with especially ETH’s and XRP’s relative weakness being worrying. BTC also failed to leave behind its prior swing high, so the coming days will still be crucial for the segment.

BTC/USD, 4-Hour Chart Analysis

While BTC hit a marginal new high amid LTC’s breakout, it failed to maintain its bullish momentum and it got back to yesterday’s narrow range. The most valuable coin is still trading above the $9,200 support/resistance level and its prior swing high. The coin is slightly overbought from a short-term perspective, and traders could reduce their short-term exposure here in light of BTC’s current relative weakness.

BTC is still on buy signals on both time-frames in our trend model, with support zones now found near $9,200, $8,600, and $8,400, and with resistance ahead near $10,000, and $11,300.

ETH/USD, 4-Hour Chart Analysis

ETH hit its highest level since late-November yesterday, entering the key long-term $180-$185 resistance zone and topping its prior short-term swing high. The coin failed to break out above that zone and its broad declining trendline, but it remains in a clearly bullish short-term trend. The coming days could see a breakout above the long-term trendline, so trading activity and volatility could spike higher.

Our trend model is on a short-term buy signal, while still being on a long-term sell signal, with major support zones found near $160, $145, $135, and $130, and with resistance zones ahead between $180 and $185 and near $200.

XRP Continues to Lag As LTC Blasts Higher

XRP/USD, 4-Hour Chart Analysis

XRP remains very weak on all time-frames, despite yesterday’s rally attempt, and it failed to test its prior swing high, getting stuck below the $0.2475 resistance level. The coin still hasn’t triggered a short-term buy signal despite the spikes higher, and traders and investors should remain defensive here.

XRP is still on sell signals on both time-frames in our trend model, with support zones now found near $0.23, $0.21, and $0.20, and with resistance zones ahead near $0.2475, and $0.26.

LTC/USD, 4-Hour Chart Analysis

LTC continues to be the undoubted leader of the current rally, as it surged past its prior swing high and the $64 resistance yesterday in late trading. The coin is now clearly overbought from a short-term perspective, and traders should limit their short-term exposure here, even as the long-term trend just got confirmed. A pullback is likely in the coming days, but LTC’s strength has to be a huge plus for bulls here.

LTC is now on a neutral short-term signal in our trend model, while being on a long-term buy signal, with support zones now found near and $64, $56, $51, and $44, and with resistance zones ahead between $72.50 and $75 and near $85.

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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.