The Monday correction is gathering strength again after a breather yesterday, as BTC failed to launch a new rally towards all-time highs and rolled over after the bounce. Correlations are high once again, as it is usual for a correction, and it’s likely that BTC and Ethereum will dictate the trend of the coming days, with small cap coins following the majors lower.
Short-term traders are advised to wait until the correction runs its course and the short-term trend turns higher again, while long-term investors should prepare to add to their holdings as we head towards the targets of the move, and buying opportunities emerge.
BTC/USD, 4-Hour Chart Analysis
Bitocoin is trading near its lows from Monday, and it will likely head for a test of the $2375 level, as it clears its overbought momentum readings. The rising long-term trendline is found near $2200, providing further strong support. The long-term picture remains bullish but there is room for further correction after the strong rally since the end of March.
ETH/USD, 4-Hour Chart Analysis
Ethereum is also correction after its stellar move to $400, following a bearish cross in the MACD, and it is getting close to the first major support zone near $350, with the rising short-term trendline and the prior swing low converging there on the USD chart. Further targets for the correction are at $300 and between $250 and $270, which could be an optimal entry for long-term investors. The Bitcoin pair is consolidating below the 0.15 level, well within the strong uptrend, with support at 0.13, 0.1225, and at 0.1125.
ETH/BTC, 4-Hour Chart Analysis
LTC/USD, 4-Hour Chart Analysis
Litecoin remains inside the long-term consolidation zone that dominated trading since early May against the Dollar. The short-term trend is still neutral, with support levels found at $27.50, $26.25. The BTC pair is little changed as it is still stuck in a range between 0.10 and 0.115.
XRP/USD, 4-Hour Chart Analysis
Ripple finally showed relative strength in early trading today, as it moved up both on the USD and BTC pairs. The USD pair declined again amid the BTC correction, but the rally against the BTC could suggest that Ripple’s lengthy consolidation will conclude soon. A sustained move above the 0.000115 level would confirm the strength, and could set up a buying opportunity in the USD pair as well.
XRP/BTC, 4-Hour Chart Analysis
ETC/USD, 4-Hour Chart Analysis
Ethereum Classic is still in a narrow consolidation pattern on the USD chart, trading just above the prior break-out level at $17.75. The BTC correction could push the currency back in its recent consolidation range, with the rising short-term trend now being broken. Long-term investors should be looking for a pull-back to $15.50 or $14.50 for further entry points if the correction continues.