Crypto Update: Week Starts on a Bullish Note as Sideways Drift Continues

The major cryptocurrencies haven’t made meaningful progress during the weekend, with Ripple’s move below support being the most important change in the technical setups. Today, we saw some positive price action in early trading, as Chinese markets reopened following the Golden Week, and traditional financial markets remained in a risk-off mood.

The top coins are still trading in narrow ranges, volatility is very low, and trading volumes are also muted in the choppy environment. The total value of the market is still hovering near the $220 billion mark, and despite the rally in some of the smaller coins, sellers are still in control of the segment, especially from a broader perspective. That said, a concerted move above the short-term ranges could trigger a tradable rally in the majors.

XMR/USDT, 4-Hour Chart Analysis

For now, only Monero is on a short-term buy signal in our trend model, even as it drifted below the rising short-term trendline. The coin is still stuck below the support zone between $120 and $125, and the long-term trend signal is also only neural, with the coin being well below the structurally important $150 resistance.

BTC/USD, 4-Hour Chart Analysis

Bitcoin is back near the $6600 level, and the largest coin continues to trade in the broad triangle pattern that dominates trading in the whole segment. As the formation is close to being broken, a quick surge in volatility a significant broadening of the trading ranges is expected as soon as the coming days which could and the choppy period in the segment.

With that in mind, traders and investors should focus on BTC, even as both short- and long-term trend signals are still neutral in our model. Key support levels are still found at $6500, $6275, $6000, and near $5850, while resistance is ahead near $6750 and $7000.

Altcoins Stable, Ethereum Gathering Strenght?

XRP/USDT, 4-Hour Chart Analysis

While Ripple is below both the $50 price level and the strong $51 support/resistance level after its recent short-term breakdown, the coin avoided a major selloff towards the $0.42-$0.46 zone, and that stability could be a good sign for the coming weeks. The long-term buy signal remained in place, despite the short-term troubles, and the broader consolidation pattern is intact too.

Strong resistance is also ahead near $0.54, $0.57, and $0.64 and traders should wait for a bullish move before entering new positions, especially given the till bearish segment-wide trends.

ETH/USD, 4-Hour Chart Analysis

On a positive note, the second largest coin gathered some relative strength during the past few days, and it remained comfortably above the primary support zone near $200 and now it’s not far from breaking out above a short-term bearish consolidation pattern. The $235 resistance level could be in the center of attention again in the coming days, and for now, ETH is still on a neutral short-term signal.

Ethereum is facing strong resistance near $260 too, and two major trendlines are converging between that level and the next zone found between $275 and $280. Traders and investors still shouldn’t enter positions here, and the long-term setup remains clearly bearish, with further support zones near $180, $170, and $160.

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.