Crypto Update: Selling Pressure Intensifies Again as Google Bans Crypto-Ads
Another wave of selling hit the cryptocurrency segment today during the European session, following the dominant online advertiser’s decision that mimics Facebook’s similar decision. Although the ban takes effect only in June, the subsequent dip took down the key support zone near $9000 in the price of Bitcoin that has been holding up since Monday in heavy trading.
Despite the sell-off, most of the majors are still trading in the range that developed after last week’s sell-off, although the Friday lows are now close by, with some of the currencies already violating or testing them, with the recently weak NEO, IOTA, Ripple, and ETC leading the way lower.
BTC/USD, 4-Hour Chart Analysis
In BTC, the short-term trend is still neutral, but the market remains shaky and nervous, as it has been the case ever since the surfacing of the Mt. Gox reports. With that in mind, short-term traders should remain cautious, although until the prior lows hold, more aggressive traders could still play the long side.
A break-down would point to a test of the support zone near the $7650 level, while a rebound above $9200 would open up the way to the $10,000 resistance, with further levels ahead at $10,500, $11,300 and $11,750.
Altcoins Still Can’t Find Footing
ETH/USD, 4-Hour Chart Analysis
While faring somewhat better than the already mentioned laggards, Ethereum is trading just above the correction lows near $640, and the second largest coin still failed to show relative strength, even as the momentum of the selling is muted.
As a break below $625 would point to a re-test of the February lows, the coin needs to hold that level to keep the long-term buy signal intact. Primary resistance is found between $740 and $780, with the dominant declining trendline currently at $800.
LTC/USD, 4-Hour Chart Analysis
Litecoin is still among the relatively strong coins, testing the crucial $170 support level today, and traders should watch the coin for signs of strength amid the broad decline. Dash is also holding up above the prior low, while Monero continues to underperform the other early leaders of the February recovery, falling below the $240 support today.
As another volatile period might be ahead, stay tuned for our detailed technical analysis coming out later today.
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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.