Technical Analysis: Bitcoin Still Under Pressure as Mixed Trading Continues
The short-term correction that has been dominating the major coins is still intact, although the relatively low volatility and the ongoing rotation between the currencies suggest that the rising trend is not in danger. Bitcoin is hovering around the $4200 level today, as the most valuable coin, exited the short-term trend and entered a trading range between $4150 and $4400 after the sharp post-crash advance. BTC is still 40% above the lows of the deep correction, and with the long-term picture being constructive we expect the advance to continue after the consolidation. Further support is found at $4000, $3800, and $3500 while resistance is ahead around $4650.
BTC/USD, 4-Hour Chart Analysis
The other majors are mixed with no major percentage changes compared to yesterday’s price levels. Ripple and Monero are still among the better-performing coins, while Dash is also showing strength after a period of weakness. NEO and IOTA remained more volatile than the broader market while Ethereum Classic found some support near $12 after a negative period. With correlations being lower than in recent weeks the individual starts require more attention from traders, so let’s see the details for the most traded majors.
ETH/USD, 4-Hour Chart Analysis
Ethereum is still holding up above the crucial $285 level despite the recent weakness, and the long-term picture remains encouraging for bulls here, with the gains of the 50% rally being mostly held by the coin. That said, the $300 level is still ahead as resistance for the currency and the short-term trading range remains intact. Further resistance is still ahead at $380, while support is at $250 and $235.
LTC/USD, 4-Hour Chart Analysis
Litecoin remains stuck between the $51 support and the $56 resistance as the coin still trades with relatively low volatility, while underperforming the broader market. LTC needs to recover above primary resistance to retain a short-term buy signal, as it is still below the rising long-term trend. Below $51, further support is found at $44, while resistance is ahead near $64, and at $75.
DASH/USD, 4-Hour Chart Analysis
Dash bounced off the key $300 level as it formed a short-term bottom as we expected, and with the long-term picture still being very positive, the coin is expected to test the $330 and $360 levels in the coming period. That said, the short-term consolidation pattern is still intact, and more sideways price action is possible before the segment concludes the short-term correction. Below $300, support is found near $265 while crucial resistance is ahead at $360 and above that at the all-time high near $410.
XRP/USD, 4-Hour Chart Analysis
XRP remains very strong from a technical perspective, still trading inside a shallow short-term consolidation pattern that points to a rally above the resistance zone around the $0.22 level soon. The coin outperformed the broader market during the current short-term correction, holding up above primary support. Further support levels below $0.195 are still found at $0.18, $0.16, and $0.14, with resistance ahead at $0.26 and $0.30.
ETC/USD, 4-Hour Chart Analysis
Ethereum Classic found support near the $12 level, but it remains weak after last week’s rally, and the resistance zone around the $13.50 level is still ahead as a major obstacle. The coin has been acting weak since the China-induced crash, and short-term traders are still advised to stay away from new positions here, although the current price levels are still attractive for investors. Primary support is found near $11, while further resistance is ahead at $16 and $18.
XMR/USD, 4-Hour Chart Analysis
Monero has been the most stable major since the crash, as it remained above the $80 support but below the declining trend with progressively falling volatility. We still expect the coin to exit its correction pattern soon and test the $100 resistance, as it remains one of the strongest currencies regarding the long-term picture. Below $80, key support is found at $68, while further resistance is ahead at $125.
NEO/USDT, 4-Hour Chart Analysis
NEO is once again trading near the $30 level as the coin continues to correct the huge rally off the crash lows. The rising trend is clearly intact, and as the MACD is back to neutral, a short-term bottom could be formed in the coming days. Support is still found at $30 and $25 while primary resistance is around the $34 and $40 levels, with the dominant short-term trendline currently at $27.50.
IOTA/USD, 4-Hour Chart Analysis
IOTA bounced off the short-term support level just above the $0.50 level again today, and it is likely forming a swing low that will conclude the short-term correction. Last week’s rally topped out near the $0.64 resistance again, but we still expect a move above that zone in the coming weeks. Further targets are near $0.75 and 41.10 while key support is still found between $0.45 and $0.48 and below that at $0.35.
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