Crypto Update: Market Stabilizes but Majors Still Pushed Lower

Cryptocurrencies are trying to find footing following yesterday’s sudden sell-off that added to the losses of the previous two sessions. For now, new lows have been averted, and volatility declined substantially amid improving news regarding the Binance-hack rumor that was the main trigger of the move.

That said, the short-term trends are still bearish in the segment, and the largest coins continue to trade in broad declining trends as well, following the recent failed break-out attempts by both Ethereum and Bitcoin.  Despite this week’s price action, the most important support levels are still holding, and the recovery that followed the historic correction of January is still “on”.

BTC/USD, 4-Hour Chart Analysis

As BTC is hovering near the $10,000 level yet again today in European trading, the key $9000-$9200 support remains safe, and with short-term momentum near oversold territory, a bottoming process could start soon.

For now, short-term traders should remain defensive, while long-term investors should hold on to their coins here, as we expect the recovery to resume. A quick move back above the $10,500 resistance level would be very positive, with further zones ahead near $11,300 and $11,750, but the correction could still continue in the coming days.

ETH/USD, 4-Hour Chart Analysis

Ethereum has dipped below the $740 support, while the rebound during the Asian session was capped by the $780 level that has been important in the last month for the coin. The token is still trading similarly to BTC, and short-term traders should remain cautious, as the bearish move will likely continue in the coming days. Resistance above $780 is ahead at $845, $910, and $1000, while strong support below $740 is found at $625.

Altcoins Remain Under Pressure Too

XMR/USDT, 4-Hour Chart Analysis

The recently leading Monero continues to correct, and it has been testing the $300 level overnight, with still no short-term but signal in the coin on our trend model. We remain positive on the coin, as we expect the advance to resume after the correction.

As correlations remain elevated today, all of the major altcoins are in the red today, and although there are pockets of relative strength, in the case of Litecoin and the already oversold ETC and Stellar, new short-term positions remain risky.

Long-term investors could be looking for entry points near the main support levels amid the sell-off, so stay tuned for our detailed technical analysis coming out later on today.

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.

Leave a Reply