Crypto Update: Rally Fizzles Out But Coins Hold Their Ground

The major cryptocurrencies are well of their highs from yesterday, as the short-covering rally lost its steam as global risk assets turned lower ahead of the weekend break again. The unprecedented monetary and fiscal steps that global authorities announced this week to fight the COIVD-19 crisis failed to prop up markets for a sustained period, but, on the long run, they are likely to be supportive for cryptos remain below their declining long-term trendline, though and the segment is still not of out

The technical setup hasn’t changed much due to the pullback, since the top coins are trading above the line-in-the-sand support levels in focus. Our trend model remains from a short-term perspective, but the buy signals still should be taken with a grain of salt due to the larger-scale patterns in the segment. BCT’s continued relative strength is plus for bulls here, but a retest of the lows or even new lows are in the cards and volatility is expected to pick up again next week.

BTC/USD, 4-Hour Chart Analysis

BTC pulled back sharply following yesterday’s short-covering spike, but falling briefly below the $$,5850 support level, it settled down above the $6,000-$6,100 zone, hanging on to its short-term buy signal. The coin remains relatively strong from a technical perspective, and although a higher swing low is not yet confirmed, traders should still enter smaller speculative short-term positions, even as the rally is still likely to be only a counter-trend move.

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

ETH/USD, 4-Hour Chart Analysis

ETH closely followed the in BTC’s footsteps in the past 24 hours and it has been trading in a narrow range between the $130 and $135 following yesterday’s wild swings. The coin is also on a short-term buy signal, but it remains weaker from a technical perspective and a trend change looks less likely in its market, making short-term trade riskier despite the recent trendline break.

ETH is on a short-term buy signal, while being on a long-term sell signal 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.

XRP Continues To Lag As LTC Holds $38 Level

XRP/USD, 4-Hour Chart Analysis

XRP continues to trade above the key $0.15 level, but it gave back most of its recent gains, and it failed to build up bullish momentum after yesterday’s weak rally attempt. The relatively weak coin dipped back below $0.1650, returning to its post-crash consolidation zone, and traders should still avoid entering even short-term positions here.

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

Despite yesterday’s sharp pullback, LTC managed to recover above the key $38 support level, and even though it’s now back below its previously dominant long-term trendline, it continues to be encouragingly stable from a short-term technical perspective. That said, volatility will likely spike higher again next week, with no confirmed higher swing low, the coin still faces considerable downside risks.

LTC on a short-term buy signal, while being on a long-term sell signal in our trend model, with support zones found near $38, $34.50, $30, and $26.50, and with resistance zones ahead $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.

Author:
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.