Crypto Update: Support Levels Under Siege But Bulls Hold Their Ground

The cryptocurrency segment continues to be controlled by sellers, even though yesterday, a major technical breakdown has been averted by bulls. The majors dipped below key support levels in late trading, extending this week’s dip, but yet again, volatility remained relatively low, and the prior swing lows held up even in the case of the weakest of the top coins. That said, the coins remain under clear and substantial selling pressure and odds continue to favor yet another breakdown.

Our trend model is also clearly bearish across the board and even the recently stable is in trouble, edging ever closer to its prior low together with the broader market. With the failed counter-trend rally attempts in mind, price action would have to change radically in the segment even a short-term trend change, not to mention a major bullish shift.

BTC/USD, 4-Hour Chart Analysis

BTC continues to trade below the key short-term support/resistance level near $7,400, despite the overnight rebound, but the coin managed to hold up well above $7,000. BTC is also in a safe distance of its prior swing low, and even though technicals are clearly bearish on all time-frames, the consolidation could still continue. We expect another downswing in the coming weeks, so traders should stay away from entering new positions.

BTC is still on sell signals on both time-frames in our trend model, with support zones now found near $7,000, $6,750, and $6500, and with resistance ahead near $7,400, $7,600, $7,800, and $8,200.

ETH/USD, 4-Hour Chart Analysis

ETH violated the $145 level yesterday in late trading, but it stayed above last week’s low and it remains well clear of its panic low from November. Today, the coin has been glued to the $145 level, so far, but it failed to make technical progress leaving the technical setup bearish on all time-frames. ETH is still likely to test its prior swing low soon, although the counter-trend move could continue in the coming days.

Our trend model remains on sell signals on both time-frames, with support zones found near $145 and $130, and with resistance zones ahead near $160, between $180 and $185, and near $200.

XRP And LTC Trade In Narrow Ranges Amid Bearish Pressures

XRP/USD, 4-Hour Chart Analysis

XRP settled down near the $0.22 level after failing at $0.23 again, and while it continues to hold above $0.21, it remains bearish on all time-frames similarly to its most important peers. The coin continues to trade in its post-crash consolidation zone, and it is still likely to hit new bear market lows in the coming weeks, although a more sustained counter-trend also remains a possibility.

XRP is still on sell signals on both time-frames in our trend model, with support zones found near $0.21 and $0.20, and with resistance zones ahead near $0.23, $0.2475, $0.26, and $0.28.

LTC/USD, 4-Hour Chart Analysis

LTC dipped briefly below the $44 level yesterday, and although it bounced back above the key support/resistance zone, it remains in a peculiar technical position. LTC seems to be ready to lead to the way lower yet again, but thanks to yesterday’s failed breakdown, another rally attempt could also be ahead. Even in that case, traders should remain defensive towards LTC due to its persistent relative weakness.

LTC remains on sell signals on both time-frames in our trend model, with support zones found near $44 and $38, and with resistance zones ahead near $51, $56, and $64.

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.