Technical Analysis: Bulls Hold Their Ground

With all eyes still on Bitcoin after last week’s steep sell-off end the subsequent consolidation, the largest coin ended Tuesday’s session on a slightly positive note. While facing undeniable selling pressure since Monday, BTC held up near the $9000 level in heavy trading, avoiding a lower low and even a test of the previous lows, for now.

BTC/USD, 4-Hour Chart Analysis

While the short-term trend is neutral and we still have no confirmation of an upswing, the coin remains on a buy signal. Resistance is still ahead at $10,000, $10,500, and $11,300, while support below $9000 is around the $8500 level and near $7650.

As for the whole segment, correlations are still high, and there is no clear leadership, despite the few relatively strong majors, but the lack of new lows and the rally in some of the small-cap coins are encouraging. We maintain the positive long-term view on the recovery, but the short-term outlook is still not clear and traders should wait for further signs of strength to open new positions in most of the altcoins.

ETH/USD, 4-Hour Chart Analysis

Ethereum is still somewhat weaker from a technical perspective than Bitcoin, despite trading in a similar pattern, and it remains on a neutral short-term signal, still trading below the key $740-$780 level. That said, long-term investors could still add to their holdings here, and we expect another test of the declining trendline now found near $800 in the coming period, with further resistance at $845 and support found near $650, and $625.


LTC/USD, Daily Chart Analysis

Litecoin is still trading in the $170-$180 trading range, and although today it failed to build on its recent relative strength, it remains one of the strongest majors. The coin is still trading in a corrective downtrend after the sideways drift today, and the short-term buy signal remains intact. Several strong resistance levels are ahead below at $200, between $225 and $235, and $250, while key support below $170 is between $140 and $150.


DASH/USD, 4-Hour Chart Analysis

Dash has been hovering around the $500 level since the Friday low and the following strong bounce, and it is followed the segment’s average closely today, despite its recent relative strength. That said, the coin is still bullish both short- and long-term with resistance found near $500, $600, and $650, and support at $435, $400, and $375.


XRP/USD, 4-Hour Chart Analysis

Ripple has been trading in a very narrow range today, and it is still well below the key $0.85 level, without giving a clear short-term signal. We still expect the recovery to continue, but the coin needs to hold up above the weekend low to avoid a likely test of the $0.68 support. Above $0.85, resistance is found near $1, $1.25, and $1.5.

Ethereum Classic

ETC/USD, 4-Hour Chart Analysis

ETC is holding up near the $20 level despite the weakness during the weekend, and although the short-term downtrend in the coin is clearly intact the lack of a durable new low could mean that a bottoming process is underway. Short-term traders should still stay away from opening new positions as the test of the $18 level might still be ahead in the coming days, with further support at $16 and $14.50, while strong resistance is ahead near $23 and $25.


XMR/USD, 4-Hour Chart Analysis

Monero has been relatively weak today, getting close to its correction lows, as it is in a corrective short-term downtrend. While we expect the recent leader to regain its strength in the coming weeks, for now, short-term traders shouldn’t enter new positions. Support levels are found at $240, $215, and $200, while resistance is ahead near $260, $280, and $300.


NEO/USDT, 4-Hour Chart Analysis

NEO is also among the relatively weaker coins and it failed to find footing today, still trading just above the key $80 support that marked the Friday low. A dip below that is still possible, with the next major support level being at $64, but we don’t expect a durable new low. Short-term traders shouldn’t open new positions here, while investors could add to their holdings, with key resistance ahead at $100, between $120 and $130, and just above $150.


IOTA/USD, 4-Hour Chart Analysis

IOTA is little changed since the Friday marginal new low, and the coin is trading below the crucial $1.50 level after a period of relative weakness. While below that, traders shouldn’t buy the coin, long-term investors could still accumulate IOTA, as we expect the recovery to resume. Support levels are found at $1.2 and $1.1, while further resistance is ahead at $1.9.

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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.

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.