Cryptocurrencies Still in Correction Mode as Volatility Declines
Ethereum and Bitcoin are still driving the major swings in the crypto market as correlations remain elevated between the majors and the smaller coins. The two giants bounced lower off the crucial resistance zones that we pointed out yesterday, and Ethereum is trading well below $300 while Bitcoin is stuck near $2500 today in early trading.
Volatility declined since the huge moves of the first couple of days of the week, and we expect more choppy action, as the coins “digest” the violent moves. The short-term downtrends remain intact for now but the previously strong coins like Dash and Antshares continue to show bullish signs amid the broad correction.
BTC/USD, 4-Hour Chart Analysis
Bitcoin’s rally stalled near the key $2600 level today, where the declining short-term trendline and a strong support/resistance level are converging. The support zone between $2450 and $2475 continued to hold the currency yesterday, and we expect BTC to remain within the two major zones today as volatility will likely decline further before the next major move, with the rising long-term trendline also providing support in the area.
ETH/USD, 4-Hour Chart Analysis
Ethereum continues to trade near the $300 level on the USD chart, with the 38.2% Fibonacci Retracement also being in the close proximity of the current price, while the $270 level acting as primary support in the current setup. The short-term MACD is showing neutral readings after the strong moves in both directions, and the long-term consolidation pattern continues to dominate the coin, so we expect more, albeit less volatile, corrective price action.
ETH/BTC, 4-Hour Chart Analysis
LTC/USD, 4-Hour Chart Analysis
Litecoin remains technically stronger than the two most valuable coins, still trading above the prior high near $38 following yesterday’s slide. Short-term traders would get a new buy signal above $44, confirming a higher swing low, but for now the picture remains neutral as the declining trendline of the correction is already broken.
DASH/USD, 4-Hour Chart Analysis
Dash remains the strongest looking major following the bounce, as it held up well during yesterday’s decline, with the $175-$180 zone acting as support all day long. The coin remained above the declining trendline of the correction and a move above $190 would trigger a new short-term buy signal, while traders could also open short-term positions now, with a relatively tight stop below $175. The ongoing correction in Ehtereumand Bitcoin might still weigh on Dash, but a break-out to new highs seems likely int he coming days.
XRP/USDT, 4-Hour Chart Analysis
Ripple is still trading in its prior ranges in both the USD and the Bitcoin pair, as the long-term consolidation patterns still dominate trading in the coin.The declining short-term trend is intact, just as in the case of ETH and BTC, and the MACD indicator is neutral on both charts, without XRP showing nor relative weakness or strength here, leaving the technical setup unchanged.
XRP/BTC, 4-Hour Chart Analysis
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