Crypto Update: Market Suffers Blow As Altcoins Weigh

The cryptocurrency segment had a rough session as even though the Fed delivered on its promise to cut its benchmark rate for the third time in a row, the major coins all declined despite yesterday’s rally attempt. The top altcoins have been leading the way lower today, with ETH and XRP all losing but BTC also dipped below the key $9.200 level, and briefly even $9,000.

Despite today’s losses, the majors are still trading within their post-surge consolidation patterns, with BTC holding to a large chunk of its gains. That said, most of the altcoins failed to show strength today, and given the broad weakness since the initial surge, the bearish long-term setups remain intact. The counter-trend rally could still continue, but downside risks are still high, and traders should continue to be defensive.

BTC/USD, 4-Hour Chart Analysis

While BTC Fell below the key $9,200 support level, it managed to hold its initial pullback low from Saturday, retaining its short-term buy signal as well. The is clearly holding up above its prior broad consolidation range, but given the broad weakness in the segment, the coin could still resume its pre-surge downtrend, so traders should apply strict risk management rules.

The coin is still on a long-term sell signal in our trend model, with further support zones now found near $8,650, $8,400, and $8,200, and with further resistance ahead near, $10,000.

ETH/USD, 4-Hour Chart Analysis

ETH showed early signs of relative strength yesterday, but it failed to maintain its breakout above its weekend high, and it fell back to the key $180-$185 support/resistance zone. The coin couldn’t trigger a short-term buy signal, despite yesterday’s advance, and it remains suspect of another leg lower in the broader downtrend, should the key $180 level fall.

Our trend model is still on sell signals on both time-frames, with support zones now found near $160, $145, and $130, and with resistance zones ahead near $200 and $230.

XRP And LTC Pull Back Together With Broader Market

XRP/USD, 4-Hour Chart Analysis

XRP continues to churn sideways near the $0.30 support/resistance level, and although it failed to break-out sustainably above that zone, it’s also holding up near the $0.28 level. The coin remains within its short-term trading range, and while another leg higher remains a possibility in the counter-trend rally, the broader downtrend is still expected to continue.

XRP is still on sell signals on both time-frames in our trend model, with support zones now found near $0.28, $0.26, and $0.2475, and with resistance zones ahead near $0.30, and $0.32.

LTC/USD, 4-Hour Chart Analysis

LTC followed the path of its most important peers today, edging lower towards the key $56 level, and it is trading near the upper boundary of its prior consolidation range after the U.S. close. From a broader perspective, LTC remains relatively weak, and traders shouldn’t enter new positions here, until we see signs of broad technical strength in the segment.

LTC remains on sell signals on both time-frames in our trend model, with resistance zones now found near $51 and $44 and with the next major resistance zone ahead near $64.

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.

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.