Cryptocurrency Analysis: Bitcoin Tests $6000 as Market Settles Down
Bitcoin is in the center of attention yet again, as the most valuable coin is knocking on the door of the $100 billion level in market capitalization. The coin touched our long-term target at $6000 on several exchanges, but it’s now trading slightly below the historic level.
While the rest of the market is quiet, BTC is very active, and it could be in for a volatile weekend, as despite the long-term overbought readings, the short-term uptrend is clearly intact. That said, investors should avoid opening new positions here, and consider lowering their exposure further, while traders should only trade with smaller than usual sizes. Support levels are found at $5400, $5000, and near the $4650 level.
BTC/USD, 4-Hour Chart Analysis
As the rest of the majors are still recovering from the recent correction, the total value of the segment is below its all-time high, with BTC’s dominance now standing at 57%. Most of the largest coins are little changed, with Monero and Liteocin showing considerable strength and IOTA still being the weakest of the majors. With all attention on BTC let’s see how the most traded altcoins look before the weekend.
ETH/USD, 4-Hour Chart Analysis
Ethereum is trading in a very narrow range today, as it failed to follow Bitcoin higher, with the short-term resistance level at $315 still holding back the coin. The long-term picture remains positive, and the short-term buy signal is also intact, but the rising long-term trendline is getting closer. Support is still found at $300 and $285, while resistance levels are ahead between $330 and $350, and near $380.
LTC/USD, Daily Chart Analysis
Litecoin is attempting a rally together with BTC, but so far the coin failed to reach the crucial resistance near $64. The currency continues to show relative strength compared to the other altcoins, and we still expect a rally above primary resistance in the coming period, with the long-term picture still being encouraging. Key support levels are still found near $56, around $51, and at $44.
DASH/USD, 4-Hour Chart Analysis
Dash is still the least volatile major, being unchanged today, and it is still stuck inside the dominant lengthy consolidation pattern. While a break-out above the formation is likely in the coming weeks, a correction in Bitcoin could still lead to a test of the $265 support, although continued range trading is more likely around the $300 level. Target levels are still ahead at $330, $360, and near $400.
XRP/USD, 4-Hour Chart Analysis
XRP remained volatile even as the segment generally calmed down, and the market remains undecided with active trading near the $0.20 support/resistance zone. With the long-term picture still being bullish, we expect the uptrend to resume after the correction, but short-term traders should wait before entering new positions. Strong resistance is still ahead near $0.24, and $0.26, and between $0.30 and $0.32, with further support at $18.
ETC/USD, 4-Hour Chart Analysis
Ethereum Classic is trading between $11 and $12.50, still being one of the weakest majors, failing to show relative strength despite the neutral long-term picture. Above the $12.50 level, the coin also faces strong resistance around the $13.50 price level, and traders should still wait with opening new positions until a clear bullish move. Further support is found at below $11 at $9, while resistance levels are ahead at $16 and $18.
XMR/USD, 4-Hour Chart Analysis
Monero made a small move together with Bitcoin today, but it remains well below the key $100 level, despite the encouraging long-term picture. We still expect a move above that level in the coming weeks, but range trading is likely to continue before a durable break-out. Support is still found near the $80 level and around $68, while further resistance is ahead at $125.
NEO/USDT, 4-Hour Chart Analysis
NEO’s market virtually froze in the last couple of days following the volatile period in the beginning of the week, and the coin is still stuck below the $30 level, and in a consolidation range. The long-term picture remains positive, but the coin might be in for more consolidation, with strong support at $27 and $25, and resistance ahead at $34 and $40.
IOTA/USD, 4-Hour Chart Analysis
IOTA failed to find support amid the selling pressure so far, and until a recovery above the $0.45-$0.48 zone, the short-term picture remains bearish, despite the encouraging long-term setup. Investors could add to their positions here, as the price level is attractive from a long-term perspective. Support is still found at $0.35, while further resistance is ahead at $0.56 and $0.64.
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