Crypto Update: Rally Pauses As BTC Fails At Prior Swing High

The major cryptocurrencies are little changed before the U.S. close following an eventful and two faces session. The segment started out the day on a positive note, as BTC kept on leading the way higher in the wake of yesterday’s bullish shift, but it failed to score another major technical breakout. The top coins all got stuck below their recent swing highs, and while the short-term uptrends are clearly intact, the long-term trend change is still not a certainty.

That said, we saw further improvements among the smaller coins, and today’s late-day pullback hasn’t changed the bullish technical setups. Our trend model is still mixed with regards to the long-term time-frame, while being overwhelmingly bullish on the short-term time-frame, and the stakes are very high in the coming days for the whole segment.

BTC/USD, 4-Hour Chart Analysis

BTC got close to testing its recent swing high near the $9,200 price level thanks to today’s early rally, but it failed to break out above the key resistance, so far. Despite the shallow pullback, the coin remains relatively strong, while being well above its previously dominant long-term trendline, which is a huge plus for crypto bulls.

BTC is on buy signals on both time-frames in our trend model, with support zones found near $8,600, $8,400, and $8,200, and with resistance ahead near $9,200 and $10,000.

ETH/USD, 4-Hour Chart Analysis

While ETH failed to test its prior swing high together with BTC, it held up well during the late-session pullback and it continues to trade in a bullish short-term pattern. The coin is still well below its declining long-term trendline and the key $180-$185 resistance zone, casting a shadow on the segment-wide rally.

Our trend model is on a short-term buy signal, while still being on a long-term sell signal, with major support zones found near $160, $145, $135, and $130, and with resistance zones ahead between $180 and $185 and near $200.

XRP Falls Short Of Buy Signal While LTC Struggles With Prior Swing High

XRP/USD, 4-Hour Chart Analysis

XRP continues to trade in the vicinity of the key long-term $0.23 level, despite a brief spike higher today, and with that, it remains relatively weak from a short-term perspective. While the coin came very close to scoring a short-term buy signal, its weakness remains a warning sign for bulls for the coming period, and traders should focus their efforts on the stronger coins.

XRP is still on sell signals on both time-frames in our trend model, with support zones now found near $0.23, $0.21, and $0.20, and with resistance zones ahead near $0.2475, and $0.26.

LTC/USD, 4-Hour Chart Analysis

LTC had a relatively active session compared to the other top altcoins, first rallying above $60 then briefly dipping back below $57.50, the upper boundary of the key support/resistance zone near $56. Despite the pullback, the coin remains clearly bullish from a short-term perspective and it is still among the strangest majors from a short-term technical perspective. Traders should pay close attention to LTC in the coming days, as it could provide important clues concerning the fate of the broader rally attempt.

LTC is now on buy signals on both time-frames in our trend model, with support zones now found near and $56, $51, and $44, and with resistance zones ahead near $64 and between $72.50 and $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.

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.