Technical Analysis: Bitcoin Extends Bounce as Altcoins Flatline
As we are approaching the end of the low-volume Christmas period, cryptocurrencies might be ready for a jump in trading activity, but today, choppy conditions are still dominant. That said, Bitcoin experienced buying throughout the session, and it reached slightly above the Saturday correction highs, as altcoins lagged behind.
BTC breached the $16,000 level, as the short-term momentum indicators cleared the oversold readings, getting back to neutral territory. Despite the recent correction, the coin still faces long-term pressures, and further correction is likely in the coming weeks, with a dip below $10,000. Key support levels below the key $13,000 zone are found at 11,300, $10,000 and $9000, with stronger levels at $8200 and $7700.
BTC/USD, 4-Hour Chart Analysis
Ethereum got stuck near the $750 level after yesterday’s healthy bounce, and the coin’s market froze, with very low volumes throughout the session. The currency is also in an overbought position regarding the long-term picture, but its prior lengthy consolidation provides a stronger support, and the coin never reached such extremes as BTC during this cycle. That said, further consolidation likely with support zones still found around $625, near $575, $500, and around the prior all-time high near $400.
ETH/USD, 4-Hour Chart Analysis
LTC/USD, Daily Chart Analysis
Litecoin also traded in a very narrow range today, and the coin remained below the Saturday high in the quiet environment. While the long-term picture is still hostile, short-term there is still room for advance, but another leg in the correction is likely in the coming days after the oversold short-term readings are cleared. Crucial support levels are just below the current price between $250 and $260, at $125 and $100, with a weaker zone at near the $170 level.
DASH/USD, 4-Hour Chart Analysis
With very little activity in the market, Dash also traded sideways today, staying below the correction highs, as the coin lagged Bitcoin during today’s rally. Dash drifted out from the short-term downtrend, but as trading picks up again, another leg in the correction is likely, with major support levels found at $1000, $800, $650, and $600.
XRP/USD, 4-Hour Chart Analysis
Ripple settled down near the historic $1 level together with the broader market, and the coin is still holding on to its break-out gains, despite the sharp pull-back and the volatile spike on Friday. Although traders could still play the short-term setup, correction risk is now high and investors shouldn’t open new positions here. Support levels are still found at $0.85, $0.68, $0.4250 and in the $0.30-$0.32 range.
ETC/USD, 4-Hour Chart Analysis
Ethereum Classic briefly spiked above the $30 level in the thin market today, drifting out of the short-term downtrend, but the oversold readings are almost cleared. With that in mind, we expect the correction to resume soon, as the long-term picture is still overbought. Support levels below are found at $25, $23, and $18, while resistance is ahead at $32 and $40.
XMR/USD, 4-Hour Chart Analysis
Monero is still holding up inside the steep dominant uptrend, despite the recent volatile move and the coin also drifted sideways today amid the BTC rally. Both the long- and short-term setups are unchanged, so we still expect the short-term trend to be broken soon, and a deeper correction to begin, with support levels below $300 found at $240, $200, $180, and $150.
NEO/USDT, 4-Hour Chart Analysis
NEO has been more active than the rest of the major coins today, especially in early trading, but the coin remained inside the short-term consolidation pattern, despite the relatively broad daily range. The currency is still encouraging from a long-term perspective, and a rally towards the $100 level looks likely after the segment-wide correction concludes. Key support zones are still found near $56, $50, and around $40, while resistance is ahead at $64 and $80.
IOTA/USD, 4-Hour Chart Analysis
IOTA got stuck below the previously dominant trendline thanks to the sideways drift today, and it remained close to the $3.50 level after the excessive volatility of the previous period. The coin remains overbought, although the extreme readings have already been cleared. We still expect another move lower in the coming weeks with strong support levels found at $3 and $1.5, and a Fibonacci support between those at $2.35.
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Disclaimer: The analyst owns cryptocurrencies. He holds investment positions in the coins, but doesn’t engage in short-term or day-trading, nor does he hold short positions on any of the coins.