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Cryptocurrency Analysis: Look Out Below, Bitcoin and Ethereum Hit One-Month Lows

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Cryptocurrency Analysis: Look Out Below, Bitcoin and Ethereum Hit One-Month Lows

Introduction

This article was posted on Wednesday, 15:33, UTC.

The price action that we described as suspicious yesterday changed dramatically after the harsh words of J.P. Morgan CEO Jamie Dimon, which led to another leg lower in the ongoing broad correction. The expected decline finally broke the support levels that held the majors up during the weekend sell-off, and now the most valuable coins are trading at one-lows following the huge rally. Bitcoin that has been relatively strong in recent weeks, is now below the $4000 level and quickly go close to the first major support level below that near $3800. Further key levels are found near $3500 and $3150, and as the correction unfolds, traders should be looking for reversals around those levels, although the long-term picture still not ideal for new investment positions.

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BTC/USD, 4-Hour Chart Analysis

The rest of the segment is in an even worse shape today, with Ethereum leading the way lower, already getting close to the $250 level just after breaking below crucial support at $285. Dash, Litecoin, NEO, and NEM all broke below major technical levels while Ripple, IOTA and Monero are looking slightly more resilient amid the broad decline, and Ethereum Classic is also down by less than 10%. As the correction is accelerating, and the coins are getting closer to a buy signal, the short-term charts will be more and more important even for investors, so let’s look at the details of today’s situation.

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Ethereum

ETH/USD, 4-Hour Chart Analysis

ETH easily broke primary support at $285 and it’s headed towards are main target zone for the correction between $235 and $250. With the long-term picture nearing oversold for the coin, investors should be looking for signs of panic selling in the coming days, which could mark at least a short-term bottom. Above $285, resistance is ahead at $330, $350 ,and $380, while below $235 the next major suppot is just above $200.

Litecoin

LTC/USD, 4-Hour Chart Analysis

Litecoin dipped below the $64 level as we expected, and found short-term support just above $56, our first target. The coin is still overbought concerning the long-term picture, but most of the correction (at least price-wise) might be behind it. That said, a dip towards $51 is still in the cards, and we expect more corrective price action before a sustained move higher.

Dash

DASH/USD, 4-Hour Chart Analysis

Dash just fell below the $300 level, but it is still well above the next crucial support zone near $265. The long-term picture remains overbought, but a quick move towards primary support could open up buying opportunities for long-term investors. The rising long-term trend remains clearly intact, with resistance ahead at $300, and $360.

Ripple

XRP/USD, 4-Hour Chart Analysis

XRP is trading right in the support zone just below $0.20, still above the long-term base formation that developed at the end of the coin’s lengthy correction. We expect the coin to outperform the other majors during the current correction, with a likely move towards the$0.26 and $0.30 levels after the next major bottom. Support is still found at $0.18 and near $0.16, while resistance is ahead at $0.26 and around the $0.30 level.

Ethereum Classic

ETC/USD, 4-Hour Chart Analysis

Ethereum Classic broke below $14.50 today in early trading and the coin is trading just above the lower boundary of the long-term support zone. The coin is neutral regarding the long-term picture, and we expect the $13.50 level to hold in the coming weeks, with a possible short-term spike below it. The current levels still look attractive for long-term investors, but more volatility is likely as the broad correction unfolds in the segment.

Monero

XMR/USD, 4-Hour Chart Analysis

Monero is holding up above the $100 level, still showing relative strength, despite the overbought long-term momentum readings. The coin is still likely to test the $80 level before the end of the correction, with further support at $72. Resistance is still ahead at $125, and near the all-time high above $150.

NEO

NEO/USDT, 4-Hour Chart Analysis

NEO dipped below the crucial $22 level and it is got very close to last week’s panic lows, still showing relative weakness, as the Chinese legislative uncertainty continues to weigh on it. Volatility is expected to remain elevated, and despite the oversold long-term readings, short-term traders should wait with new positions until an uptrend is established. Key resistance levels are ahead at $22, $25, and $30, while strong support is found just above $16.

IOTA

IOTA/USD, 4-Hour Chart Analysis

IOTA is testing the strong support zone between the $0.45 and $0.48 levels after yesterday’s rally attempt. Te declining trend remains intact, and although the long-term momentum is getting oversold, the broad correction could mean more volatility for the coin. That said, long-term investors could be looking for short-term dips to enter new positions, with strong support found near $0.35.

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Mate Cser

Mate Cser

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.

Comments
  • user

    AUTHOR Chris G

    Posted on 1:52 pm September 14, 2017.

    Litecoin down to 54 this morning, what do you think? Buy?

  • user

    AUTHOR Chris G

    Posted on 2:52 pm September 14, 2017.

    well I just pulled the trigger at $49.7/LTC – seems like a good entry point.

  • View Comments (2) ...
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