Crypto Update: Market Settles Down But Coins Fail To Recover

The major cryptocurrencies are all slightly lower after the U.S., as the effects of the recent bloodbath continue to dominate trading in the segment. The nervous post-crash consolidation wasn’t enough to improve the technical picture in the case of the top coins, but for now, another leg lower in the downtrend has been avoided by bulls.

The short-term momentum indicators continue to show oversold readings, so the current phase of consolation could continue in the coming days, but the relative weakness of BTC is a negative sig for the whole segment. As the smaller coins are also weak across the board, with the exception of IOTA, the bearish outlook for the market is unchanged, despite the current stability of the majors.

BTC/USD, 4-Hour Chart Analysis

BTC has been one of the weakest among the majors ever since the start of this week’s crash and it remains vulnerable to another breakdown, due to the proximity of its prior low. The coin is still under clear selling pressure, and a move below $8,000 looks likely following the oversold consolidation, with the primary resistance being well above the current price zone.

The coin is on sell signals on both time-frames in our trend model, with support zones found near $8,200, and between $7,600 and $7,800, and with resistance zones now ahead near $8,400, $9,200, $10,000, and $11,300.

ETH/USD, 4-Hour Chart Analysis

ETH remains slightly stronger from a short-term technical perspective, in comparison to BTC, but it’s also in a well-defined downtrend, holding up just above the key $160 price level. The short-term momentum indicators remain in oversold territory, but we still expect the sell-off to resume, and new lows are very likely in the coming weeks.

Our trend model is on clear sell signals on both time-frames, with support zones now found near $160, and $145, and with resistance ahead between $180 and $185, and near $200 and $230.

Litecoin and Ripple Hit New Lows Amid Carnage

XRP/USD, 4-Hour Chart Analysis

Ripple experienced a relatively strong bounce following the selling panic, and the coin rallied up to the $0.25 level, despite hitting a new bear market low earlier on this week. From a long-term perspective, XRP is still one of the weakest majors, and once the current consolidation runs its course, the bear market is likely to resume.

The coin is still on sell signals on both time-frames in our trend model, with support zones found near $0.23 and $0.21, and with resistance zones ahead near $0.2475, $0.26, and $0.28.

LTC/USD, 4-Hour Chart Analysis

Litecoin continues to be very weak on all time-frames, and while it avoided another downswing, consolidating together with the broader market, it couldn’t leave the vicinity of the $56 price level. The key technical breakdown remains clearly intact, and that points to further downside in the coming weeks, despite the current oversold bounce.

The coin is firmly on sell signals on both time-frames in our trend model, with further resistance zones above $56 ahead near $64 and $75, and with major support zones now found near $51 and $44.

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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.