Technical Analysis: Bitcoin Locked in Tight Range as Altcoins Drift Lower
The short-term picture in the cryptocurrency segment remains dominantly bearish, with still no majors being on a buy signal according to our trend model. Volatility declined substantially in recent days, and that could still be a sign of an ongoing bottoming process, but a healthy rally would need clear leadership with meaningful bullish momentum, and none of those is present currently as most of last week’s leaders pulled back.
BTC/USD, 4-Hour Chart Analysis
That said, Bitcoin is outperforming altcoins, holding up above a key support zone near $7650, while trading in a narrow range with low volume and volatility. The coin is still on a neutral short-term signal, and before a rally above primary resistance near $8400, traders shouldn’t open new positions, while the long-term setup is still favorable. The coin is facing further resistance between $9000 and $9200, while support is found below $7650 near $7000 and $6750.
ETH/USD, 4-Hour Chart Analysis
Ethereum is still in a clear short-term downtrend, trading right at the recent 4-month low, near the $450 price level. While investors could still add to their holdings, given the oversold long-term picture, traders should stay out of the market, for now. The second largest coin is facing strong resistance at $500, $575, $625, $640, and between $740 and $780, with primary support found at $400.
LTC/USD, Daily Chart Analysis
Litecoin has been under pressure in recent days, losing its short-term relative strength, but still trading well above the February lows. The coin is right at the lower boundary of the declining trend channel, with strong support just below at $125. With the long-term picture still being bullish, investors could still add to their holdings, but the currency is on a short-term sell signal. Resistance is ahead at $140, $150 and in the key $170-$180 while further support is at $100.
DASH/USD, 4-Hour Chart Analysis
Dash is under strong selling pressure despite the weekend strength, and the coin is now trading slightly below the $360 support as well, although the decline is lacking momentum, and last week’s lows are well below the current price level. The currency is on a short-term sell signal, and a recovery above the next resistance level at $375 would be needed at least for an upgrade, with support found near $315 and $300.
XRP/USDT, 4-Hour Chart Analysis
Ripple continues to trade in a strong downtrend, although the $0.58 level, which is marking the February low, is holding for now. The coin is still on a short-term sell signal, and a drop below last week’s low near $0.54 would warn of a test of the prior all-time high at $0.42. The coin faces strong resistance at $0.68, $0.85, and $1, with a short-term level found at $0.73.
ETC/USD, 4-Hour Chart Analysis
Ethereum Classic is hovering around the $16 level, still above both last week’s low and the February minimum. That said, the coin is clearly in a short-term downtrend and on a sell signal for traders, however investors could still accumulate the coin here, as ETC is oversold from a long-term perspective. Support levels are found at $14.50 and $13.50 while further resistance is near $18, $20, and $23.
XMR/USDT, 4-Hour Chart Analysis
Monero is the closest to a short-term buy signal among the majors, as it recovered up to the primary resistance at $200 today, but for now, the key level held back the coin. As we expect the currency to retain its recent leadership, investors could still add to their holdings, but only aggressive traders should open new positions here. Strong resistance levels ahead, near $240 and $280, while key support is found at $175 and $150.
NEO/USDT, 4-Hour Chart Analysis
NEO settled down near $0.57 after plunging below the $64 level, as the coin lost its relative strength after a very brief period. The currency is slightly above last week’s low, but, together with its closest peer Ethereum, it remains among the weakest coins from a short-term perspective, while long-term investors could add to their holdings. Strong support is at $50, while further resistance is ahead at $80, $100, and between $120 and $130.
IOTA/USD, 4-Hour Chart Analysis
IOTA failed to build on its leadership during last week’s rally and it’s still trading near the $1.20 support level, below the broad declining trendline that is currently found near $1.35. The coin is neutral short-term, while long-term investors could still accumulate IOTA here. Resistance above that is at $1.5 and $1.9, while support is found at $1.1 and $1.
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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.