Crypto Update: Market Retreats but Most Coins Remain Bullish
The major coins are in a short-term pullback after the strong rally off the weekend lows, with the relatively weak Ethereum and Ripple still weighing on the segment. The early leaders of the bounce, Ethereum Classic and IOTA were already correcting yesterday, as we noted, and now the other bullish coins are also correcting.
For now, the largest currencies are holding on to most of their gains, while trading above the prior declining short-term trendlines as well. On a negative note, correlations are still elevated, despite the notable divergences between the coins, and the global risk sell-off also seems to be affecting the segment.
BTC/USD, 4-Hour Chart Analysis
Bitcoin’s losses are muted so far, and until the coin doesn’t durably dip below the prior swing low at $8400, the short-term picture remains bullish. The key $9000-$9200 zone halted the advance, but we expect another attempt in the coming week, with a likely test of the broad declining trendline just above $10,000 too. Support below $8400 is near the $7650 level while further resistance is ahead at $10,500.
ETH/USD, 4-Hour Chart Analysis
Ethereum turned lower of the declining short-term trend again, as the coin is still severely lagging the average from a technical standpoint. The resistance zone near the $575 price level adds to the troubles of the coin here, and ETH still hasn’t triggered a short-term buy signal, although long-term investors could add to their holdings at these levels. Primary support is found at $500, while strong resistance above $575 is ahead at $625, and in the $740-$780 zone.
Altcoins Still not out of the Woods
IOTA/USD, 4-Hour Chart Analysis
While most altcoins are well below yesterday’s intraday highs, the bullish short-term setups are intact in most cases, with the likes of Litecoin, Ethereum Classic, IOTA, and Monero trading clearly above the recent correction lows. The coins that started showing strength a bit later, NEO, Cardano, Stellar, and Dash are also lower today, while Ripple dipped below the $0.68 support again, as it remains the primary concern for bulls here.
The next couple of sessions will be crucial concerning the fate of the rally, as an orderly pullback and another leg higher could cement the trend, but a surge in volatility could lead to another test of the lows despite the encouraging long-term picture.
Stay tuned for our detailed technical analysis later on today.
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