Crypto Update: Rally Pauses as Bitcoin Eyes $10,000
After the major cryptocurrencies followed Litecoin’s lead as expected yesterday, most of the segment pushed higher overnight again, running into another batch of key resistance levels. All eyes are on Bitcoin again, as the coin quickly got within Dollars of the psychologically important $10,000 price level after its break-out above the $9000-$9200 zone, as we anticipated.
BTC/USD, 4-Hour Chart Analysis
The coin pulled back from the historic levels, and now it’s consolidating not far off the overnight highs. While BTC is not yet overbought from a short-term standpoint, and the $11,300 level could be in play in the coming days, trading will likely get choppy near $10,000 as the coin works its way through the resistance in the zone.
With the broader declining trend still being intact, volatile sell-offs are expected, but long-term investors should hold on to their coins, and use the pull-backs to boost their holdings, as a confirmed trend change is likely in the coming weeks.
Among the other leaders of the move, Litecoin reached above the $225 level, Monero breached the crucial $280 resistance, Dash’s advance halted near $700 and the declining trendline, and IOTA hit $2. In the meantime, Ethereum Classic is in an orderly short-term correction after its surge, currently trading near the $32-$34 support/resistance zone.
ETC/USD, 4-Hour Chart Analysis
Ethereum and Ripple Lagging
XRP/USDT, 4-Hour Chart Analysis
As correlations remain in line with a bullish trend, being way lower than in the panicky period of the past few weeks, there are notable laggards amid the broad rally. Ripple’s short-term weakness is still likely attributed to the coin’s very strong initial bounce that led to the current consolidation.
Ethereum is also behaving in-line with its delayed cycle high, but the long-term relative strength of the coin is still apparent, as it was the case ever since its break-out in December. The smaller late leaders of the year-end rally, NEO, Stellar, and Cardano are also among the relatively weaker coins today, with Stellar still showing the most promise.
Stay tuned for our detailed technical analysis later on today.
Featured image from Shutterstock