Technical Analysis: Bitcoin Grinds Higher as Records Tumble in Altcoins

The historical surge in the segment, which is the second such move this year, continued today, with another round of break-outs in some of the major altcoins and tepid gains for BTC investors. Ethereum, Ripple, Dash, and first and foremost Litecoin was leading the charge, with the recent star LTC topping $300, just after a day of hitting the $200 mark.

Litecoin defied all odds after reaching extremely overbought readings, and the coin rode the speculative wave, turning exponential, not unlike IOTA and Bitcoin previously. With the coin being stretched in an unprecedented way on all time-frames, investors could even consider selling their core positions at the current levels, as a deep correction is almost granted in the coming period. The first meaningful support level is found at $125, and a re-test of the $100 level is probable during the next major correction.

LTC/USD, 4-Hour Chart Analysis

Ripple finally ended a long period of relative weakness today, and the only major on a long-term by signal jumped over primary resistance at $0.26 and crossed the $0.30-$0.32 too in the euphoric sentiment. As the coin is not long-term overbought following the 6-month long consolidation, the buy signal in XRP remains intact, with the only major resistance level being found at the all-time high near $0.425.

XRPUSDT/USD, 4-Hour Chart Analysis


BTC/USD, Daily Chart Analysis

Bitcoin and the whole segment has been boosted by yesterday’s BTC futures launch, but the most valuable coin lagged altcoins in the aftermath of its recent surge, although it managed to climb to a marginal new all-time high today. The digital currency remains dangerously overbought from a long-term perspective, with primary support near $13,000, further levels at $11,300, $10,000, $9000, and stronger levels at $8200 and $7700.


ETH/USD, 4-Hour Chart Analysis

Ethereum surged to a new all-time high after consolidating below the $500 level, and cleared the historic mark without major encountering major resistance this time. The coin topped $600, adding more than 30% during the session, and although the final target for the break-out two weeks ago is still ahead at $680, investors should reduce their holdings here given the state of the broader market. While we still expect the outperform during the next move lower, a deeper dip is likely in the currency too.


DASH/USD, 4-Hour Chart Analysis

Dash also turned higher after a period of range trading below its recent all-time highs, and although it remains below the prior short-term uptrend, the coin reached new record highs today. Despite the current move, the currency is still likely to enter a deeper correction soon, as the long-term picture remains stretched, and investors should wait for better entry points. Major support levels are now found at $650, $600, $500, and near $410.

Ethereum Classic

ETC/USD, 4-Hour Chart Analysis

Ethereum Classic bounced back to the $30 level thanks to the broad rally, but it remained relatively weak after its prior stellar rally.  While short-term gains cannot be ruled out, and the 4-hour MACD is still neutral, we still expect a deeper correction in the coming period that will likely provide much better buying opportunities. Support is still found $23 at $18 while further resistance is ahead at $32.


XMR/USD, 4-Hour Chart Analysis

Monero is testing its all-time high at $300 today, but remains among the slightly weaker coins amid the segment-wide double-digit gains. While the short-term uptrend remains intact, we don’t expect durable new highs from the coin in this cycle, and a deep correction is likely in the coming period with support levels at $240, $200, $180, and $150.


NEO/USDT, 4-Hour Chart Analysis

NEO remained inside the dominant broad consolidation pattern, still being the most “independent” major regarding the short-term price action. That said, the coin drifted higher today as well, but the technical setup remained unchanged on all time-frames, and the currency remains neutral short- and long-term. Support levels are still found at $34, $30, and $27, while resistance is ahead at $40, and $50.


IOTA/USD, 4-Hour Chart Analysis

IOTA failed to rally substantially today, as it is still stuck below the previous short-term trendline in a consolidation pattern, after the recent exponential rally. As we still expect a major correction in the coin, investors and traders should wait with entering new positions. Strong support is still just found at $3 and $1.5, with potential Fibonacci support at $2.35.

Featured image from Shutterstock

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.

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.