Technical Analysis: Coins Hold Gains amid Stock Turmoil
As volatility and uncertainty continue to reign supreme in financial markets, the cryptocurrency segment is an island of relative calm, which is a huge change compared to the previous weeks and months, when cryptocurrencies were the most volatile asset class by a mile.
Bitcoin and the rest of the majors have been trading in relatively narrow ranges, consolidating the previous rally’s gains. Correlations are way lower than before, underlying the positive tendencies in the market besides the obvious decline in volatility. Despite the bullish signs, the downtrend that has been decimating the coins is still intact, and given the several strong overhead resistance levels ahead, a choppy and lengthy bottoming process wouldn’t surprise us.
BTC continues to trade below yesterday’s high at $8650 after the scary overnight dip that pushed the most valuable coin briefly below the key $7650 level and the subsequent rally. The technical setup remains unchanged with oversold long-term momentum readings, and a setup that is favorable for long-term investors to accumulate the coin. Primary resistance is still ahead between $9000 and $9200, with further levels at $10,000 and $11,300, while support below $7650 is found between $6750 and $7000, and at $6150 and $5750.
BTC/USD, 4-Hour Chart Analysis
As the rotation that we pointed out this morning continued, a new batch of coins is leading the market higher now, with only Dash remaining strong from the early leaders while Monero, Bitcoin Cash, and Ethereum Classic pushed forward today. Monero surged above the $240, and it’s now close to the bounce high from last week, and the dominant declining trendline. Further resistance is ahead at $280 and $300, while support below $240 is at $200, $175, and $150.
XMR/USDT, 4-Hour Chart Analysis
ETH/USD, 4-Hour Chart Analysis
Ethereum is consolidating just below the $850 support level, while being well clear of the $740 support that stopped the overnight decline. The coin is oversold form a long-term perspective while being back to neutral regarding the short-term momentum. Long-term investors could still add to their holdings on the short-term sell-offs, while traders should wait for a confirmed trend change before entering new positions. Support levels below $740 are found at $625 and $575, while resistance is head near $850 and $1000.
LTC/USD, Daily Chart Analysis
Litecoin is still hovering near the $150 level as it lost its relative strength after the strong rally. That said, the coin remains in an encouraging long-term position, and it’s expected to enter a bullish cycle soon, with the cycle low likely already being set. With that in mind, investors should still keep adding to their holdings on the short-term dips while aggressive traders could also enter positions near the main support levels. Primary resistance is ahead between $170 and $180, while support is at $125 and $100.
DASH/USD, 4-Hour Chart Analysis
Dash continued to lead the rally today, reaching above the $600 level yet again. The coin is well clear of the $500 level, while still being in a declining trend despite the recent strength. A short-term consolidation is now likely that could still be used by investors to add to their holdings. Traders should still wait for a trend change before entering positions, although a final cycle low is likely already in. Resistance levels are ahead between at $650 and near the $825 level, while support is found at $500, $410, and $360.
XRP/USD, 4-Hour Chart Analysis
Ripple is drifting lower along the short-term trendline as the coin lost its relative strength similarly to Litecoin. The currency is still well above the $0.68 support, despite the pull-back, and as the long-term setup is favorable, investors could add to their holdings here. Resistance is ahead at $0.85, $1, $1.25, and $1.5, while support is found at $0.68 and $0.56.
ETC/USD, 4-Hour Chart Analysis
Ethereum Classic showed strength today, although the coin is still shy of the $23 level, and the downtrend remains intact in line with the broader market. We expect a lengthy bottoming process in the coin, with a likely re-test of the $18 level before a confirmed trend change. Investors could still add to their holdings on the short-term sell-offs, with support below $18 found at $16 and $14.50, while further resistance is ahead at $25.
NEO/USDT, 4-Hour Chart Analysis
NEO has been lagging the segment today following the strong rally in the coin after the Monday sell-off, and with the long-term picture still only being neutral, the $100 level could be in focus in the coming week. Despite that, we don’t expect a new low in the currency, even as the correction will likely continue and investors could add to their holdings near the main support levels, although traders should wait before entering positions. Resistance levels are ahead at $125 and just above $150, while support is at $100, $80, and $64.
IOTA/USD, 4-Hour Chart Analysis
IOTA lost some of its relative strength today, as it is consolidating its recent gains, and the coin remains below the key resistance zone surrounding the $2 price level. As the downtrend is still intact, further volatility is expected before a stable downtrend, even though the final cycle low is likely already set. Primary support is found at $1.5, while resistance is near $1.9, $2.2, and $2.35.
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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.