Crypto Update: No Break-Outs… Yet
The major coins are slightly lower today, with most of the currencies being lined up below strong resistance levels, as we noted yesterday. Bitcoin is struggling to get over the $11,300 level again, while Ethereum has an even bigger technical obstacle just ahead, in the form of a broad declining trendline.
While the price action remains bullish, and we expect the recovery to continue, with the downtrend that started in late December still being intact in the two largest coins, hectic trading conditions could still persist as ETH and BTC work their way through the resistance zones ahead.
BTC/USD, 4-Hour Chart Analysis
As BTC has been clearly in the center of attention recently, traders should continue to watch the $10,500 and $10,000 support levels for any weakness, while a rally towards $13,000 is still the most likely scenario.
The percentage changes are not significant so far today, as volatility remains low, even as traditional financial markets are in turmoil again. For now, Bitcoin is ignoring the negative global sentiment, and during yesterday’s “Trade War” selloff, BTC actually gained ground, together with the more traditional safe-haven assets, gold and the Japanese Yen. This could be a sign that following the steep correction January, Bitcoin will retain its alternative safe-haven status.
Monero Testing Resistance Too as Ripple Still Weak
Altcoins are having a choppy and mixed period, with only a few coins showing clear momentum in either direction. The low level of correlations still points to a positive underlying trend, but that still didn’t translate to a bullish move in Ripple, with the third largest coin drifting lower yet again today in early trading.
XMR/USDT, 4-Hour Chart Analysis
From a technical perspective, Monero is on the other end of the spectrum, as the coin broke out from the broad declining trend a long time ago, similarly to Litecoin and ETC, and XMR has also been showing short-term relative strength lately. While the very strong $335 level is still ahead, we wouldn’t be surprised if further strength and a break-out towards $400 followed in the coming days.
Yesterday’s other outperformers, IOTA and Dash also retreated somewhat today, and with the early leaders of the recovery ETC and LTC still showing short-term weakness, the consolidation period could still continue in the case of most of the majors.
Stay tuned for our detailed technical analysis later on today.
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