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.