Cryptocurrencies had a very quiet day, with Ethereum’s slide and Ripple’s pull-back defining sentiment. Bitcoin recovered after yesterday’s dip, and finished the US session near the $2700 level again. With financial markets definitely in summer mood, short-term traders might be in for more frustrating days and sudden moves in both directions, as trading volumes thin out. Small cap coins also traded mostly sideways, with the lengthy consolidation patterns being intact.
BTC/USD, 4-Hour Chart Analysis
Bitcoin continues to trade between $2600 and $2750, with no clear short-term direction amid progressively falling trading volumes. BTC failed to follow through on Tuesday’s strength but also bounced back encouragingly off the short-term support level. The long-term picture still points to more consolidation or correction so we remain neutral on the currency.
ETH/USD, 4-Hour Chart Analysis
Ethereum scared investors and traders with its recent weakness although the current weakness is normal following the stellar rally of the past few months. The $300 level held the coin so far during this consolidation, with only a brief spike below that support last week. The BTC pair is approaching the rising long-term trendline thanks to yesterday’s weakness, probably setting up a good buying opportunity for long-term investors. An ideal setup would b a spike below 0.11 followed by a quick recovery in the trend channel.
ETH/BTC, 4-Hour Chart Analysis
LTC/USD, 4-Hour Chart Analysis
Litecoin remains the strongest major, as the coin held up well despite the short-term overbought readings that developed after the weekend rally. That said, we expect more consolidation before the resumption of the trend, with a possible test of the 0.015 level against Bitcoin and the $40 support on the Dollar chart.
LTC/BTC, 4-Hour Chart Analysis
XRP/USDT, 4-Hour Chart Analysis
Ripple confirmed a failed break-out today as it slid out of the short-term rising trends on both the USD and BTC charts. The coin fell back below the $0.30 level to re-enter the long-term consolidation pattern that dominated trading for several weeks. The 0.00010 support still holds on the BTC chart, but the currency needs to recover above the 0.000115 level to trigger another short-term buy signal.
XRP/BTC, 4-Hour Chart Analysis
NEM/BTC, 4-Hour Chart Analysis
NEM continues to trade in a persistently weak fashion against Bitcoin, since the brief surge in mid-May. The coin broke its rising long-term trend recently and re-entered the base between 0.000057 and 0.000075. The test of the 0.000065 level now seems likely, barring a quick surge above 0.000084. Short-term traders should avoid the coin for now while long-term investors could add to their positions here.
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