Technical Analysis: Bitcoin Holds $8000, Ethereum Stays Above $500 amid Pullback
The major cryptocurrencies continue to act bullish after last week’s strong momentum move higher, as the largest coins are all trading in shallows corrections or are already on the move again following a short pullback. The segment as a whole is holding on to the recent gains in market value, with the total market cap of the digital currencies hovering around $330 billion today.
Although we can’t conclude that a new positive trend is established, with the two most valuable coins still in broad declining trend channels, both Bitcoin and Ethereum might be ready to tackle key trendlines as soon as this week.
As correlations are starting to break down between the majors, which is another bullish sign, several smaller coins also decoupled from the broader market, already trading at new rally highs today in early trading. Given the favorable long-term setup, we remain positive with regards to both short- and long-term positions here.
BTC/USD, 4-Hour Chart Analysis
BTC continues to show some relative weakness, despite remaining above short-term support, as a very strong resistance zone is just ahead, near the $8400 level. The broad declining trendline is converging with that horizontal resistance and we expect trading activity to explode higher in that zone, should the coin attempt a breakout. Further resistance is ahead between $9000 and $9200, while support is found near $7650 and $7000.
ETH/USD, 4-Hour Chart Analysis
Ethereum is consolidating just below the weekend high, with the coin trying to form a higher low after the strong push higher. With the short-term momentum indicators nearing neutral again, a test of the rally high is likely soon, with the key resistance zone between $555 and $575 converging with the broad declining trendline similarly to BTC. Support below $500 is found at $400 and $360, while the next major target for a breakout is at $625.
LTC/USD, Daily Chart Analysis
Litecoin is on the on the rise today, finally showing short-term relative strength after lagging the market during the initial rally off the lows. The coin is trading just below the lower boundary of the $140-$150 resistance zone, right at the declining trendline as well. From a long-term perspective, the coin is still among the most bullish digital currencies, and a move above $150 could set up a test of the $170-$180 zone, with support at $125, $110, and $100.
DASH/USD, 4-Hour Chart Analysis
Dash continues to be among the short-term laggards, although it is also holding on to most of its recent gains, still trading inside the resistance zone between $360 and $375. The coin left behind the dominant declining trendline, but several strong resistance levels are still ahead, and a short-term uptrend is not yet established. Investors could still add to their holdings on the pullbacks, with support found at $315 and $300, and further resistance ahead at $400 and $435.
XRP/USDT, 4-Hour Chart Analysis
Ripple is still hovering around the key $0.68 level in a bullish consolidation pattern following the breakout of the declining trend, with the $0.73 and $0.84 levels ahead as resistance. The short-term correction could be over soon, and both the short- and long-term picture looks positive, with key levels near $0.57, $0.54, and $0.45.
ETC/USD, 4-Hour Chart Analysis
Ethereum Classic couldn’t leave the vicinity of the $16 so far, although the coin showed stability during the segment-wide dip. The currency is trading right at a key declining trendline, while the next major resistance level is at $18. The long-term momentum indicators are still in oversold territory, and investors could accumulate the coin with support levels at $14.50 and $13.50.
XMR/USD, 4-Hour Chart Analysis
While Monero remains in a strong long-term technical position, the coin is still lagging the market short-term, with the $200 resistance level holding it back. That said, as a long-term base is now likely established both traders and investors could hold on to their positions here, while looking for further entry points, with strong support at $175 and $150 and strong resistance levels ahead near $240 and $280.
NEO/USDT, 4-Hour Chart Analysis
NEO is likely headed for a test of the $80 level that is converging with the dominant trendline, as the coin continues to act relatively strong compared to the other majors after the strong rally. For now, the $64 level is in focus, with further support near $50 and $40, while the next target is ahead at $100.
IOTA/USD, 4-Hour Chart Analysis
IOTA has been leading the market higher during the recent rally pushing above the key $1.50 level in the process. The coin is still overbought from a short-term perspective, and further consolidation is likely before another leg higher. The currency likely started a new uptrend given the strong momentum of the move, and a test of the $1.9 level is likely in the coming weeks, while support below $1.5 is found at $1.2.
EOS/USD, 4-Hour Chart Analysis
EOS continues to consolidate its lofty gains after the leading the market higher last week, with the $9 level still being in focus. Although the correction could continue in the coming days, the MACD indicator is back to neutral, and a move above the swing high could lead to a test of the $12 level, with the all-time high found just above that near $14.50.
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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.