Crypto Update: Pullback Continues As BTC Violates $9,000

The major cryptocurrencies are in the red for the second day in a row, with BTC and XRP leading the way lower, breaking below key technical levels. BTC not just left the vicinity of the key support level that has been in focus since the coin’s recent surge, but it also dropped below $9,000 threatening with a downgrade in our trend model. The top altcoins have also been under pressure today, and while the prior lows are still safe, the outlook got even more bearish today.

With the long-term bearish setups clearly being intact, the risk of another, possibly volatile downswing are rising, and traders are facing increased risks in the coming days. Bulls would need a quick recovery, to at least stabilize the segment, but since the majors failed to extend their gains, the broad downtrend could soon resume.

BTC/USD, 4-Hour Chart Analysis

BTC is at the risk of leaving the consolidation zone that developed following the recent segment-wide short squeeze. The coin failed to test its broad declining trendline in recent days despite the rally attempts among the top altcoins, and now, it confirmed its relative weakness, which is a negative sign for the whole segment.

The coin is still on a long-term sell signal and a short-term buy signal in our trend model, with support zones now found near $8,400, and $8,200, and with resistance ahead near $9,200 and $10,000.

ETH/USD, 4-Hour Chart Analysis

While ETH has been showing signs of relative strength today, at least from a short-term technical perspective, it dropped below its initial support level, getting back to the key $180-$185 support/resistance zone. The dip means that the odds of a failed rally attempt are growing which could lead to a quick retest of the $160 support and the previous swing low.

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

XRP Falls Below $0.28 As LTC Fights For $60 Level

XRP/USD, 4-Hour Chart Analysis

XRP remained under pressure following its recent pump & dump pattern, and the coin is now trading back below its recent trading range and the key $0.28 support level. The relatively weak coin could soon resume its long-term downtrend, despite the recent period of relative strength, and should the $0.26 level fall, the prior bear market low could quickly be in play again.

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

LTC/USD, 4-Hour Chart Analysis

After failing to move sustainably above the $64 resistance level, LTC sold off together with the broader market, but despite the losses of the past couple of days, it’s still holding up well, at least from a short-term standpoint. That said, the coin remains among the weakest majors according to the long-term setups, and should the $60 support be broken the $56 level has to hold, in order to avoid another test of the prior low.

LTC remains on sell signals on both time-frames in our trend model, with further resistance zones found near $56, $51, and $44 and with the next major resistance zone ahead near $75.

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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.