Cryptocurrency Analysis: Bitcoin Retreats from Record Highs as Rally Stalls

Bitcoin was in the center of attention again as the most valuable coin reached a marginal new all-time high on Sunday, but turned back lower today towards the $6000 level. Bullish rumors from China is boosting the segment today, but with the long-term picture clearly being overbought, the short-term uptrend might be in danger in the coming days as well. The negative divergence in the MACD indicator also points to a fading trend, and investors who are still holding major positions should keep stops tight now. Support levels are found near $5800, $5400, and around the $5000 level.

BTC/USD, 4-Hour Chart Analysis

Altcoins were less volatile than BTC, and although they mostly followed Bitcoin, the majority of the major coins is little changed since Friday. Ethereum is holding up above the $300 level still well within is lengthy trading range, while Ripple still trades close to the $0.20 support. Ethereum Classic is the positive surprise of the session, as the previously weak coin is showing relative strength as it is consolidating just below key support. As the long-term remains positive for the segment in general, let’s see how the short-term charts look.

Ethereum

ETH/USD, 4-Hour Chart Analysis

The price of the ETH token got close to the $315 level thanks to the weekend rally, but the coin remained stuck inside the dominant trading range, as it continues to edge closer to the long-term trendline. We still expect a break-out of the range towards the resistance levels ahead between $330 and $350, at $380, and near the $400 level. Below $300, key support is found at $285 and $250.

Litecoin

LTC/USD, Daily Chart Analysis

Litecoin is still one of the least volatile majors as it continues to hover around the $56 level, while trading in a bullish consolidation pattern. Strong support levels are still found at $53, $51, and $44, but we expect a move above the current range in the coming week, as the long-term picture is encouraging while momentum is neutral. Targets for a bullish move are found at $64 and $75.

Dash

DASH/USD, 4-Hour Chart Analysis

Dash is also trading in a low-volatility range just as Litecoin, and the coin is also among the relatively strong majors regarding the long-term picture. The currency is headed for a confluence zone of the declining short-term trendline and the $285 support, and we expect it to resume the long-term uptrend soon. Dash is facing strong resistance at $300, $330, and $360, while primary support is found near $265.

Ripple

XRP/USD, 4-Hour Chart Analysis

Ripple is showing some relative strength after settling down following a volatile decline near $0.20. The coin is still trading inside a long-term trading range, as the $0.30 level stopped the rally yet again, while the short-term setup is gradually improving. Short-term traders should still wait with opening new positions, with resistance zones ahead above the current range near $22.50 and $0.26.

Ethereum Classic

ETC/USD, 4-Hour Chart Analysis

Ethereum Classic is finally acting bullish, as far as the short-term picture is concerned, but the coin remains stuck in a downtrend, while facing several strong resistance levels as well. The $11 price level is the primary obstacle, with the declining short-term trendline being very close too. Short-term traders could play a move above $11 in the coming days, while long-term investors should keep an eye on the resistance zone around $13.50 for a bullish confirmation.

Monero

XMR/USD, 4-Hour Chart Analysis

Monero has been the least volatile major in recent days, as the coin is trading near the midpoint of the lengthy trading range that developed after the September crash. While we still expect sideways price action, the volatility compression points to a looming break-out, while the long-term picture is clearly bullish. Primary resistance is ahead at $100, with further targets at $125, and near $150.

NEO

NEO/USDT, 4-Hour Chart Analysis

NEO is still trading between $27 and $30, as the coin continues to consolidate the post-crash surge that breached the $40 level in early October. We expect the currency to re-test that zone in the coming weeks, and move above $30 could be imminent. Below $27 further strong support is found at $25 and near $22.

IOTA

IOTA/USD, 4-Hour Chart Analysis

IOTA continues to trade in a declining trend despite last week’s encouraging rally, but the coin is not far off the dominant trendline. Short-term traders should still wait for a move out of the pattern, while investors could still add to their positions here. Primary resistance is ahead in the $0.45-$0.48 zone, with further targets at $0.56 and $0.64, and crucial support at $0.35.

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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.