Technical Analysis: Bitcoin Recovers above $8500 but Altcoins Still Weak
The cryptocurrency segment had a relatively quiet couple of days after a stormy Wednesday, as all of the major coins remained above the lows following the initial bounce. The market is still lacking bullish momentum, even as the most valuable coin is clearly outperforming the rest of the top currencies.
BTC/USD, 4-Hour Chart Analysis
BTC managed to rally back above the prior swing low as the downtrend lost some steam during the recent leg lower, and although the trend is clearly intact, short-term traders could soon get a buy signal.
With the long-term picture unchanged, the $9000-$9200 resistance zone and the $7650 support remains in focus, and we still expect the recovery off the February low to resume after the current downswing. Further resistance is at $10,000 and $10,500, while the next major support zone is near $7000.
ETH/USD, 4-Hour Chart Analysis
Ethereum continues to underperform both BTC and the segment average, trading well below the prior swing low, as the strong $625 level capped the weak bounce in the last two days. The short-term is still dominant and traders shouldn’t open new positions here, while long-term investors could still add to their holdings. Further resistance is ahead at $640 and between $740 and $780, while support is at $575 and near $500.
LTC/USD, Daily Chart Analysis
Litecoin is still the strongest altcoin from a technical standpoint by a wide margin, and it remains the only major above the dominant long-term downtrend line. The short-term downtrend, on the other hand, remains intact, but the bearish momentum is clearly weakening and the coin is trading just below the key $170-$180 zone. The short-term outlook is neutral, while long-term investors could still accumulate the coin.
DASH/USD, 4-Hour Chart Analysis
Dash is stuck below short-term resistance near $435 level, and the weak bounce left the coin on a short-term sell signal, despite the slight momentum divergence. The coin is tested the February low during a spike lower, and the support levels near $400 and $375 could be in focus in the coming period. Long-term investors could still add to their positions, while traders should wait for signs of strength before entering the market, with further resistance ahead at $500.
XRP/USD, 4-Hour Chart Analysis
Ripple is still hovering around the key $0.68 level, while trading below the previous swing low, still on a short-term sell signal. Traders shouldn’t enter new positions here, while investors could add to their holdings. Short-term support is at $0.63 while the February low is found at $0.58, with resistance ahead at $0.85 and $1.
ETC/USD, 4-Hour Chart Analysis
ETC is trading right at the steep downtrend line near $18, while being stuck below the prior swing low. As the coin is strongly oversold from a long-term perspective a reversal might be close, and investors could still add to their holdings. That said, the short-term sell signal is intact and traders should wait with entering new positions. Support is found near $16 and $14.50, while above $18 key resistance is at $20 and $23.
XMR/USD, 4-Hour Chart Analysis
Monero is still among the relatively weak coins, trading well below the previous swing low, in a clear short-term downtrend. The coin will likely test $200 level again, and both short-term traders and investors should still wait before entering the market. Below $200 further support is near $175 and $150, while resistance is ahead at $240.
NEO/USDT, 4-Hour Chart Analysis
NEO is very weak form a short-term perspective, barely bouncing off the Wednesday low, and the coin remains in a strong downtrend and on a short-term sell signal. That said, investors could still accumulate the coin, as the long-term momentum is oversold. Key resistance is ahead at $80, $100, and between $120 and $130, while strong support is at $64 and $50.
IOTA/USD, 4-Hour Chart Analysis
IOTA is still among the weaker majors, as the bounce of the past two days was muted, and the coin remained well below the $1.20 resistance and the declining trendline. The $1.1 level is in focus currently with the key $1 level providing further support while resistance above $1.2 is at $1.5. Short-term traders still shouldn’t enter new positions here, while investors could accumulate the coin.
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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.