The most valuable coins are still trading in very narrow ranges today, as last week’s correction still dominates the market, although the low volatility environment more resembles a continuation pattern than a pause before another leg lower. “Never short a dull market” is an old but reliable truth of trading, and the long-term charts are also pointing to a bottoming process for Ethereum and Bitcoin.
Litecoin already continued its bull market after the correction, in fact, it got close to a long-term target, while Dash also broke out to new highs this week, before entering a short-term correction. The other majors are yet to make a significant move, so let’s how their charts shape up before the weekend.
BTC/USD, 4-Hour Chart Analysis
Bitcoin continues to be glued to the $2600 level that has been the value area of the whole week, and although the coin seems more bullish than Ethereum, having broken the declining short-term trednline, it hasn’t given a clear buy signal yet. The $2450 is the primary support, and the currency remains neutral between the two crucial levels and according to the MACD indicator as well.
ETH/USD, 4-Hour Chart Analysis
Ethereum’s trading range narrowed down to a few Dollars in the last few days, leaving the dominant short-term consolidation pattern intact. The BTC pair is also in correction mode, trading slightly above the 0.10 level, still below the declining short-term trendline. Volume is also progressively declining since last week’s wild moves, and short-term traders are still advised to wait before entering new positions.
ETH/BTC, 4-Hour Chart Analysis
LTC/USD, 4-Hour Chart Analysis
Litecoin retraced its break-out after getting very close to the range extension target, as it pulled back towards the $50 level as expected. The current environment is not supportive of strong momentum moves, and that could mean a choppy short-term correction for the coin, with the MACD indicator still clearly in a move lower from overbought territory.
DASH/USD, 4-Hour Chart Analysis
Dash’s break-out got stopped by the first target near $220 so far, and the coin is re-testing the $200 level as we speak. The long-term picture remains bullish but a move below primary support could set up a move to $185-$190, the previous short-term resistance zone, and a resumption of range trading in the generally slow environment.
XRP/USD, 4-Hour Chart Analysis
Both of Ripple’s charts are unchanged since our previous report, and the long-term ranges remain intact, as trading volumes of the currency collapsed. Short-term traders are still advised to wait with new positions and hold on to their existing longs, as the long-term setup remains unchanged, and the currency is now in a close to two-month long correction.
XRP/BTC, 4-Hour Chart Analysis
ETC/USD, 4-Hour Chart Analysis
ETC remains in a volatility compression pattern, similarly to most of the other majors, with low trading volumes since last week’s major moves. The $18 resistance is still int eh center of attention, and a move above that level would set up a test of the $23 high, while a dip below $16 could mean a move back to the primary support at $14.5, although the long-term picture is still clearly bullish for the currency.
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