Crypto Update: Top Coins Still Under Pressure as Support Levels Continue to Hold
The technical setup continues to be stable in the cryptocurrency segment, with no major developments among the top coins, even as a few key short-term support levels have been tested in the past 24 hours. The weakness in the markets of Ethereum and Ripple is still weighing on the outlook of the broader market, and as Bitcoin also fails to shows bullish momentum, the dominant coins are all stuck in bearish setups.
The total value of the market has been stable just above the $120 billion level, so although we are seeing no meaningful inflow of capital into the segment, the market is balanced, at least from a short-term perspective. That said, the long-term negative pressures are still apparent, and despite the current stability, bearish risks remain high, and traders and investors should wait for signs of technical strength before entering the market.
EOS/USD, 4-Hour Chart Analysis
Our trend model is on sell signals on both time-frames with regards to the majority of the coins, and although correlations are slightly lower than in recent weeks, with Litecoin, EOS, and Tron showing early signs of strength, we are still far from a reversal, and bear market rules still clearly apply.
BTC/USD, 4-Hour Chart Analysis
Bitcoin continues to trade just below the key $3600 support, with low volatility and trading activity, and no real directional momentum. While the bear market low and the crucial long-term support near $3000 is not in immediate danger, the both the long- and short-term downtrends remain intact and we don’t have any evidence of a short-term bottom so, traders should still stay away from entering new positions here.
Resistance above the $3600 is ahead near $3850, and bulls would need a move above that level to consider new positions with further resistance between $4000 and $4050, and a weaker short-term support zone found near $3250.
ETH/USD, 4-Hour Chart Analysis
Ethereum tested the short-term support zone around near the prior swing low at $112, and for now, the relatively weak coin managed to hold up above that level, avoiding a test of the key $95-$100 zone. That said, ETH is far from the key $130 resistance level and the bearish overall picture is still apparent, with the test of the bear market low near $80 likely ahead in the coming weeks.
With that in mind, traders should remain defensive here, and barring a move above $130, no new positions should be opened here. Further resistance zones are ahead at $145, $160, and near $180, and although a failed break-down pattern could still form, our trend model remains on sell signals on both time-frames.
Altcoins Mixed in the Quiet Environment
XRP/USDT, 4-Hour Chart Analysis
Ripple is still trading below the key 40.32 level, showing relative weakness on all time frames, while being on sell signals in our trend model as well. The coin is safely above the $0.30 level, for now, with low volatility and trading volume still dominating its market.
We continue to expect a move below the $0.30 price level, with a likely test of the bear market low as well. Bulls would need a move above $0.3550 to change the short-term setup, with further resistance still ahead near $0.3750 and in the key long-term zone between $0.42 and $0.46.
LTC/USD, 4-Hour Chart Analysis
Litecoin showed relative strength yet again today, but the stability is still not enough to justify an upgrade in our trend model as the coin is stuck in a short-term range just above the $030-$30.50 support zone. With the long-term downtrend in mind, a move below support towards the $26 support tand the bear market low near $23 is still likely, barring a rally above primary resistance at $34.50.
That said, should a broader leadership develop in the coming days, the short-term setup could change in LTC, but for now, traders shouldn’t enter positions here, with further strong resistance ahead near $38 and $44.
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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.