Cryptocurrency Analysis: Consolidation Continues as Bitcoin and Ethereum Remain Strong
Crypto-bulls can be satisfied by the way the majors are working their way through the short-term correction, as both Bitcoin and Ethereum are consolidation just below their recent highs. Bitcoin looks to be ready for another leg higher with a further target near $3675 and the range-projection target at $4150. With the long-term picture getting overbought, long-term investors should lower their exposure further as the price moves higher, while traders should still lean to the long side, as the uptrend is clearly intact. The geopolitical tensions are also helping BTC here, so shorting is still risky.
BTC/USD, 4-Hour Chart Analysis
The other majors are not yet in long-term overbought territory, with even the previously rallying NEM, Monero, Litecoin, and Ethereum still having room to advance more. Dash still looks set for a break-out to new highs, while Ripple and Ethereum Classic continue to lag, being in downtrends despite the broad rally and the positive sentiment. As the weekend often brings significant moves in the segment, let’s see which coins have the best prospects.
ETH/USD, 4-Hour Chart Analysis
ETH is hovering around $300 since it started its narrow consolidation pattern, and the pattern suggests more upside in the coming weeks. That said, more consolidation is likely for the token as the short-term MACD is still slightly in overbought territory. Primary support is found at $285, while resistance is ahead at $330 and near the prior all-time high at $380 and $400.
LTC/USD, 4-Hour Chart Analysis
Litecoin is virtually unchanged since the rally on Sunday, and the coin remains stuck near the $48 level with the $50 resistance and the prior high near $56 being in the focus of traders. The coin is a strong candidate for a weekend move, with support levels found at $44, and $42.
DASH/USD, 4-Hour Chart Analysis
Dash has been grinding higher throughout the week, but it still yet to gather strong bullish momentum, with the triangle consolidation pattern being intact. The prior highs are still just ahead as strong resistance, and our range projection target remains at $260.
XRP/USD, 4-Hour Chart Analysis
XRP has been the weakest major in the last few days, and the coin is still drifting lower, following the declining long-term trendline. Primary support is at $0.16, with strong resistance levels ahead at $0.18, $0.20 and around the $0.22 level. Short-term traders should still be careful with new positions until a trend change is confirmed.
ETC/USD, 4-Hour Chart Analysis
Ethereum Classic is the other suspicious coin, trading in a downtrend below the $16 level this morning. That said, the token is holding up well above the crucial resistance zone near $14 and a renewed uptrend is still the most likely outcome, with the long-term momentum picture being neutral.
XMR/USD, 4-Hour Chart Analysis
Monero is still in a clear short-term uptrend, trading just below the $52 resistance. The short-term MACD is back to neutral, so the coin is back on a short-term buy signal. The long0term picture still supports more upside, so a rally to the prior highs near $58 is likely in the coming period.
NEM/BTC, 4-Hour Chart Analysis
NEM is consolidating near the 0.0009 level against BTC, in a flag pattern, remaining among the relatively strong majors. The coin is still likely to test the 0.00010 resistance in the coming week, as both the short- and long-term picture are both bullish. Primary support is found at 0.000075 with the break-out level below that at 0.000065.
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