Crypto Update: Market Turns Choppy As Coins Fail To Extend Rally

Global risk assets continue to trade with a bullish bias despite yesterday’s failure in the U.S. to pass the historic $2-$2.5 trillion stimulus package to tackle the COVID-19 crisis. The top cryptocurrencies settled down in narrow trading ranges following the wild early-week swings in the segment, and besides BTC, the top coins failed to make meaningful technical progress, getting stuck near the top of their post-crash consolidation zone.

While BTC’s strength remains a huge plus for bulls here, the key resistance levels ahead of the largest altcoins could halt the advance, and our trend model remains mixed even in the short-term time-frame. The long-term patterns remain bearish across the board, and although BTC could soon see another upgrade the weak breadth in the segment warrants short-term caution even as a broader bottoming process might very well be underway.

BTC/USD, 4-Hour Chart Analysis

BTC continues to enjoy inflows thanks to the massive government intervention and the central banks’ inflationary steps, and it looks ready to score a higher swing low, which would confirm a new short-term uptrend. The coin has been slowly pushing higher today in early trading, outperforming its closest peers again, and a rally above $7,000 is in the cards today, with the recent breakdown level still being ahead as strong resistance.

BTC is on a short-term buy signal, while being on a long-term sell signal in our trend model, with support found near $6,500, between $6000 and $6100 and near $5850, and with resistance is ahead near $6,750, $7,000, $7350, and $7,600.

ETH/USD, 4-Hour Chart Analysis

ETH has been edging lower in the past 24 hours, after getting close to the $145 resistance level and the upper boundary of its post-crash consolidation range. The coin is still lagging BTC, but this week’s encouraging sings could be hinting at a more sustained counter-trend move, even as the long-term setup is firmly bearish, and downside risks remain high here.

ETH is now on sell signals on both time-frames in our trend model, with major support zones found between $130 and $135, near $120, and between $95 and $100, and with resistance zones ahead near $145 and $160.

LTC Eyes Breakout As XRP Sticks To $0.1650 Level

XRP/USD, 4-Hour Chart Analysis

XRP remains weak from a technical perspective, but it has been showing stability in the past 24 hours settling down jus below the key long-term $0.1650 level. The coin is still trading near the mid-point of its post-crash range, and because of that, a renewed buy signal would require a strong rally. That said, a segment-wide breakout could lift XRP too, but traders should focus on the relatively stronger coins.

Our trend model is still on sell signals on both time-frames, with support zones found near $0.15, $0.13, and $0.11, and with resistance zones ahead near $0.1650, $0.1750, $0.19, and $0.20.

LTC/USD, 4-Hour Chart Analysis

LTC has been holding up above the $40 price level overnight, well clear of the $38 support/resistance level, but despite its relative strength, it still fell short of a renewed buy signal. The coin is facing stiff resistance near the top of its short-term range, with its declining long-term trendline and the $44 level also being ahead. That said, LTC is not far from triggering a buy signal, and despite the downside risk, it could be ready for a more sustained rally.

LTC is on sell signals on both time-frames in our trend model, with support zones found near $38, $34.50, $30, and $26.50, and with resistance zones ahead near $44, $51, and $64.

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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.