Cryptocurrency Update: Bitcoin, Ethereum, Litecoin, Ripple, Dash, Ethereum Classic
The crypto-market continued its correction towards the end of the weekend, as we expected, with the long-term view still pointing to more consolidation in the majors and the smaller coins as well. Ethereum remains the leader of the move, as it is back to the crucial support zone which caused a bounce during the first phase of the correction, while BTC is also testing an important level right now. Ripple returned to its trading range, while Litecoin’s break-out is still intact and Dash is also above its prior high while ETC is holding on above key support in a bullish fashion.
BTC/USD, 4-Hour Chart Analysis
Bitcoin bounced off a strong short-term confluence zone at $2450 overnight, with the rising long-term trendline and a prior support holding up the currency. We still expect a break below the zone, and a test of the $2350 level, and maybe the prior low at $2150. A bounce above $2600 could change the short-term picture, but for now, traders should still avoid new positions, while long-term investors could increase their positions near the support levels.
ETH/USD, 4-Hour Chart Analysis
Ethereum is still in the deep correction after the two-week rally from $130 to $400, and it is now trading right in the $250-$270 price zone that we pointed out as the initial target for the move. A further break lower could trigger the test of the $235 or the $200 level, with the latter representing a 50% pull-back. The long-term picture is approaching neutral now, and the correction could soon be over, as the short-term indicators are already showing oversold readings.
ETH/BTC, 4-Hour Chart Analysis
LTC/USD, 4-Hour Chart Analysis
Litecoin touched our target for the correction at $38 following the strong break-out one week ago, and the MACD indicator is back to neutral thanks to the move. A move above the short-term trend line at $42 would trigger a new buy signal, but for now, the picture remains neutral, while the long-term uptrend is intact.
XRP/USD, 4-Hour Chart Analysis
Ripple is trading in its prior ranges against both the USD and Bitcoin as last week’s break-out attempt was interrupted, but technically it is stronger short-term than the two most valuable coins, still suggesting a move higher in the coming period. The momentum indicators remain neutral, and we expect the key support levels to hold during the broad correction.
XRP/BTC, 4-Hour Chart Analysis
DASH/USD, 4-Hour Chart Analysis
Dash is well above its prior high near $150, in a bullish consolidation pattern that has dominated trading in the currency for two weeks now. Another test of the support of the range is possible in the correction, but the short-term picture remains neutral and investors are advised to accumulate the coin if it continues lower.
ETC/USD, 4-Hour Chart Analysis
ETC is also inside a bullish consolidation pattern much like Dash, although it failed to break out to new highs above the $23 level yet despite its recent short-term relative strength. That said, a move back above $21.50 would trigger a new buy signal, and we expect the next rally to reach the $25 zone after the correction in the majors runs its course.
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