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Quiet Start for Cryptocurrencies after One Month of Correction

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Quiet Start for Cryptocurrencies after One Month of Correction

Introduction

This article was posted on Monday, 07:39, UTC.

The major coins are still trading without strong momentum, as the lengthy correction remains intact for both Bitcoin and Ethereum. Ripple is in an even longer sideways trading pattern, while Litecoin and Dash are in a short-term correction after hitting new highs last week. Ethereum Classic, which moved together with smaller coins during the weekend, is still acting weak, but it held up near a strong support zone that could signal a short-term trend change.

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While the long-term picture is looking more and more constructive for the market, as the overbought momentum readings have mostly been, ETH and BTC are still stuck in their corrections, and short-term traders should still be cautious, until a clear move to the upside. That said, some of the coins could already be ready for a move so let’s see how the charts look this morning.

Bitcoin

 

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BTC/USD, 4-Hour Chart Analysis

Bitcoin has been trading around the $2500 level for more than a week now, and it held up well during the weekend as the smaller coins got smashed lower. As volatility remains low in the currency, the long-term picture is quickly turning neutral. We expect some more sideways action before a major move in the coin, and before a clear move out from the short-term range above $2600, trades should still avoid new positions.

Ethereum

ETH/USD, 4-Hour Chart Analysis

Ethereum has been the weaker of the two major coins in the past two weeks, and it’s still stuck in the declining trend that has been the dominant pattern during the correction. The $235 support is in focus today, and a break below that could mean that ETH will test the correction lows. Short-term traders should wait for a move above $250 before entering new positions, although the BTC held up above support at 0.095, showing early signs of healing.

ETH/BTC, 4-Hour Chart Analysis

Litecoin

LTC/USD, 4-Hour Chart Analysis

Litecoin remained in a bullish short-term correction pattern throughout the weekend, still looking the strongest among the majors. The long-term picture suggests that the current move might run into strong resistance soon, as the coin wold reach a significant long-term target in the $58-$60 zone. That said, another leg higher from the current levels is likely, but we suggest caution with new positions as the coin nears the target zone.

Dash

DASH/USD, 4-Hour Chart Analysis

Dash is in similar short-term pattern as Litecoin, although its break-out has stalled near the initial target at $216, as the coin failed to move away from the key $200 level. Both the short-term and long-term picture is still bullish, and a move towards $250 is still likely, especially if BTC and ETH will finally show strength int the coming days. Primary support is found at $190, serving as a good entry point for short-term trades.

Ripple

XRP/USD, 4-Hour Chart Analysis

Ripple is still stuck in its long-term trading range, as it still failed to move above the dominant declining trendline, despite being in a correction for nearly two months. Volume and volatility are still very low in the coin, as short-term traders avoid the sideways price action, and we also suggest to wait with new positions until a move above the current pattern.

Ethereum Classic

ETC/USD, 4-Hour Chart Analysis

ETC fell to the lower boundary of it’s trading range near $14.50 during the weekend, and it remains clearly in a declining short-term trend, similarly to ETH. The coin is currently trading near the key $16 level, while the trendline in focus is slightly above the price near at $16.50. A move above that could open up the way to $18, but the highs near $23 are still far away for the currency.

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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.

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