Crypto Update: Sell-Off Deepens as Majors Break Key Levels

The past 24 hours saw another crucial bearish move in the cryptocurrency segment, with the majority of the top coins violating their prior bear market lows and starting another leg lower in the damaging downtrend. Even the relatively stronger coins turned bearish in our trend model with regards to the short-term time-frame while staying bearish throughout the recent consolidation period.

The top coins trading at their lowest levels in more than a year, and the total value of the market got close to $100 billion following the historic rout, and although the broader picture remains oversold, and sentiment is still excessively negative, for now, traders shouldn’t enter even ultra-short-term positions after today’s breakdown.  Since no bullish leadership developed and the relatively stronger coin failed to maintain their bullish momentum, odds still favor the continuation of the bear market.

BTC/USD, 4-Hour Chart Analysis

Bitcoin broke down below the key $3600 and triggered a short-term sell signal in Asian trading, and it extended its losses below the prior bear market low since then. The coin is now likely headed for a test of the very important $3000 support/resistance level, with the bearish long-term setup clearly being intact.

Traders and investors should stay away from entering new positions here, even as the coin is still oversold from a broader perspective, with strong resistance zones above $3600 ahead between $4000 and $4050 and near $4450.

ETH/USD, 4-Hour Chart Analysis

Ethereum continued to show technical weakness compared to Bitcoin, and it also violated its prior bear market low and the key 95-$100 support zone. The coin is now bearish on both time-frames in our trend model, and traders and investors should still not enter positions here, despite the deeply oversold broader picture.  Strong resistance above $100 is ahead near $120, $130, and $150, while strong long-term support is now found in the $73-$75 zone.

Altcoins hit New Bear Market Lows as Ripple Joins Crash

XRP/USDT, 4-Hour Chart Analysis

Ripple broke below the $0.32 support overnight, triggering a long-term sell signal in our trend model and remaining relatively weak from a short-term standpoint. The coin is still trading above its prior bear market low, but it erased its September surge, and it looks ready to test the low near the $0.26 support. Above that another, weaker level is found near $0.28, with resistance levels ahead near $0.30, $0.32, and $0.3550, and traders and investors shouldn’t enter positions here.

Litecoin/USD, 4-Hour Chart Analysis

Litecoin got smacked lower today after triggering a short-term sell signal, and the prior bear market low couldn’t stop the rout, as the bearish long-term forces took control of the market. The coin remained on a long-term sell signal in our trend model despite the period of relative strength in November, and the odds continue to favor the continuation of the bear market. Traders and investors shouldn’t enter positions here, with primary support now found near $23 and with resistance ahead near $26 and between $30 and $30.50.

Monero/USDT, 4-Hour Chart Analysis

The bearish leaders of the sell-off continue to be under damaging selling pressure, with no sign of stability, and that is negative for the whole segment’s outlook. Monero broke below support together with the broader market and crashed below the $50 level, confirming the coin’s relative weakness. The short- and long-term sell signals remain in place in the case of XMR and the other lagging altcoins, and traders should stay away from the weaker coins until we don’t see signs of stability in the market.

Featured image from Shutterstock

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.