Crypto Update: Market Remains Under Pressure as Coins Fail to Recover

While the major cryptocurrencies are trading slightly above yesterday’s lows, the charts remain wounded due to the sharp drop, and the outlook remains negative on all-time frames. The top coins are all sporting small gains but there is no sign of meaningful bullish momentum, and most of the currencies are trading below the previously dominant short-term trendlines.

The long-term picture remains hostile, with the steep declining trends being intact and with that in mind, traders and investors should be defensive here, especially ass none of the top 5 coins are showing signs of relative strength. Without a stable leadership, the market is likely headed for at least a test of the bear market lows, with new lows likely in the relatively weaker coins, even if a broader bottoming process is already underway.

ETH/USD, 4-Hour Chart Analysis

Ethereum broke below the key $130 support, and got close to the next level of interest near $120, and the previously leading coin continues to show short-term relative weakness compared to the other majors. The coin is still on sell signals on both time-frames in our trend model, and traders and investors shouldn’t enter positions here especially given the negative long-term setup. Further support below $120 is found between $95 and $100, while resistance is ahead at $160 and near $180.

BTC/USD, 4-Hour Chart Analysis

Bitcoin has been testing the key $3600 after the plunge, but for now, the coin showed some resilience amid the broad sell-off, and that is one of the few positive signs for bulls here. That said, the coin remains clearly below the prior advancing trendline, and given the dominant declining long-term trend, we traders and investors should stay away from entering new positions. A test of the key long-term $3000 level still seems likely in the coming weeks, with further support found at $3250, and with resistance ahead near $3850 and between $4000 and $4050.

No Sign of Strength Among Key Altcoins

LTC/USD, 4-Hour Chart Analysis

Litecoin violated the key $34.50 support level yesterday, and although the coin is holding up near the rising trendline, it failed to show signs of strength. The $30-$30.50 zone is in sight now, and with the long-term picture in mind, we expect the LTC to drop below that zone. The coin is on sell signals on all time-frames with further support found near $26, and with strong resistance zones ahead near $38 and $44.

XRP/USDT, 4-Hour Chart Analysis

Ripple continues to be the weakest top coin from a short-term technical perspective, and while the bear market low is still well below the current price level, a dip below $0.30 towards the low remains likely. The $0.32 support has been in focus today, and barring a quick recovery above the $0.3550 level, the coin will remain on sell signals on both time-frames in our trend model. Resistance above $0.3550 is ahead near $0.3750 and in the key long-term zone between $0.42 and $0.46, with further support found near $0.26.

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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.

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.