Technical Analysis: Coins Rebound as Key Support Level Holds Bitcoin
The $13,000 level in the price of Bitcoin continued to be the center attention of traders today, as the most valuable coin successfully tested the crucial support zone overnight, despite another brief dip below it. The other majors followed the subsequent bounce higher, with Ethereum pushing past $1250 once again, while Ripple reclaiming the $2 level.
Despite the bounce, the short-term trend in Bitcoin is clearly bearish and the correction is still likely to continue, although the extreme long-term overbought readings are now cleared. We still expect a move towards the previous correction low near $11,300, with a likely dip below $10,000 before the end of the current cycle, with further important support levels are found at $9000, $8200, and $7700.
BTC/USD, 4-Hour Chart Analysis
Ripple recovered slightly after nearing the $1.50 level and reaching short-term oversold readings, and the coin tested the primary resistance level at $2.1 yesterday in late trading. The currency remains in a strong short-term downtrend despite the bounce and the continuation of the correction is likely, although long-term investors could already accumulate new positions near the main support levels at $1.50, $1.25, and $0.85.
XRP/USDT, 4-Hour Chart Analysis
Ethereum bounced of the dominant short-term trendline, but the coin remains overbought on all time-frames and we expect a trendline break in the coming days. That said, traders could hold smaller positions here with tight stops as a push towards the prior all-time high is still possible. Key support levels are found at $1000, $850, $740, $625, and near $575.
ETH/USD, 4-Hour Chart Analysis
LTC/USD, Daily Chart Analysis
Litecoin is still under strong selling pressure as it remains below the primary resistance zone between $250 and $260, despite the broad bounce. The coin is likely to test the mini-crash lows before the end of the cycle, despite the now neutral long-term momentum readings. Investors could be looking for entry points near the major support levels at $180, $125, and $100, but traders should be cautious here, until the short-term downtrend is intact.
DASH/USD, 4-Hour Chart Analysis
Dash bounced back over the $1000 level together with the broader market, and although the coin is likely to dip below the previous correction low, the short-term picture is now neutral. Major support zones are found around the $850 level, near $600, at $500, $470, and near $410, while resistance is ahead at $1250.
ETC/USD, 4-Hour Chart Analysis
Ethereum Classic is trading in a relatively narrow range below the $34 level in a choppy fashion, as the recent spikes above that resistance were unsuccessful. While the long-term picture is now neutral, we still expect another leg lower with a likely dip below the $23 level. Strong support above that is at $25 and $30, while further resistance is ahead at $40.
XMR/USD, 4-Hour Chart Analysis
Monero settled down between the $350 and $400 levels, and the volatility in the coin’s market is now way below the levels of the recent period. The currency is still overbought from a long-term perspective, and a dip below $300 is likely in the coming weeks, with further major support levels under that at $240, $200, $180, and $150.
NEO/USDT, 4-Hour Chart Analysis
NEO has been among the stronger majors during the current bounce, and the coin got close to testing the recent all-time highs, as the short-term uptrend is still intact. That said, while short-term gains are still possible, the currency is now severely overbought from a long-term perspective and investors should stay away from new positions here. Key support levels are still found at $100, $80, $64, and $56.
IOTA/USD, 4-Hour Chart Analysis
IOTA settled down after testing the $3 level again, and the coin is still hovering inside the broader correction pattern that has been dominating the market since early December. The coin is now neutral from a long-term standpoint, but we expect further volatile trading before the end of the cycle following the previous exponential run-up. Crucial support is found below $3 at $2.35 and $1.5.
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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.