Technical Analysis: Bitcoin Trades at $6500 as Crucial Support Levels Fall

The cryptocurrency market suffered a big hit in past three days, as all of the major coins sold off heavily after Sunday’s Coinrail hack.  Following the failure of the recent crucial rally attempt, the plunge of Bitcoin and major altcoins sent shockwaves throughout the segment, pushing several majors, like BTC, DASH, Monero, and NEO to multi-month lows.

From a technical perspective, the selloff is significant, as some of the relatively weaker coins got close to a secular trend change. While the outlook deteriorated for the coins, on a positive note, the early leaders of the recovery that started in April, Ethereum, IOTA, and EOS are holding up relatively well.

BTC/USD, 4-Hour Chart Analysis

That said, the total value of the market is back to $280 billion, mostly because if the relative weakness of Bitcoin, and the most valuable coin continues to be the biggest drag on the segment. BTC is close to testing the April lows following today’s leg lower, and the coin is on a short-term sell signal after hitting a new low below the May minimum.

Bitcoin is oversold from a short-term perspective, but a break below $6500 could open up the way to the $6250 and $6000, and $5850 support levels, while resistance is ahead at $6750 and $7000.

ETH/USD, 4-Hour Chart Analysis

Ethereum spiked below $500 in late trading today, but the coin is still under the key level and bulls have some hope of a failed breakdown, as Ethereum remains among the relatively stronger coins. While the long-term setup remains positive, traders shouldn’t enter new positions here. Primary support below $500 is at $450, with further levels at $400, $380, and $360, while strong resistance is ahead between $555 and $575, and between $625 and $645.


LTC/USD, Daily Chart Analysis

Litecoin is on the verge of providing a major bearish breakdown, as it is testing the key $100 level and the lower boundary of the long-term base pattern. The short-term setup is clearly negative, but for now, the long-term picture hasn’t turned negative. Strong resistance above $100 is ahead at $110 and $125, while support is at $90 and $75.


DASH/USD, 4-Hour Chart Analysis

Dash continues to be among the weakest majors and it violated the April low, trading at the lowest level since November. The coin is hovering near the $265 support level, and it needs to find support in the region, to void a major bearish breakdown. A week support level is found at $250, while a stronger zone is between $200 and $215, with resistance at $280 $300, and $325.


XRP/USDT, 4-Hour Chart Analysis

Ripple is still among the stronger coins from a short-term perspective and the long-term is also less precarious than in the case of the weaker majors. The long-term buy signal is intact, and the coin is above the May and April lows, with the short-term trend signal being neutral. Primary support is found near $0.54, with further levels at $0.51, $0.475, and $0.45, while resistance is ahead at $0.575, $0.64, and $0.68.

Ethereum Classic

ETC/USD, 4-Hour Chart Analysis

Ethereum Classic briefly spiked above $16 today (thanks to its listing on Coinbase) after a breakdown below the April low at $13, but the coin is now trading near the $14.50 support again. The coin is on a short-term sell signal despite the spike, but the long-term bullish setup is also in danger. Both investors and traders should wait with entering new positions, with further resistance ahead at $18, and primary support found at $13.50.


XMR/USD, 4-Hour Chart Analysis

Monero broke down below the $150 support level and by that the key base pattern, triggering a long-term downgrade, as the coin continues to show clear relative weakness. XMR is now hovering around the $125 support, and traders and investors shouldn’t enter new positions here. Resistance above $150 is ahead at $175, while further support is found at $150.


NEO/USDT, 4-Hour Chart Analysis

NEO continued to show relative weakness, and the coin also triggered a long-term downgrade as it violated the April low, while also being on a short-term sell signal. Traders and investors should stay away, from entering new positions, with strong resistance ahead near $50, and support found at $39 and near $34.


IOTA/USD, 4-Hour Chart Analysis

IOTA is still among the stronger coins from a technical perspective, as the coin is well above the April low, although it triggered a short-term sell signal today in late trading. Long-term investors could still add to their holdings, but traders should stay away from new positions. Resistance is ahead near $1.35 and $1.50, while support is at $1.20, $1.1, and $1.


EOS/USD, 4-Hour Chart Analysis

EOS is still in one of the strongest technical position among the majors, although it broke below the key $12 level again, and it is currently testing the May low near the $10 support. The long-term buy signal is intact, despite the broad weakness in the segment, but traders shouldn’t enter new positions here. Further support is found at $9, while resistance is ahead near $15.5 and $19.

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.