The major cryptocurrencies are little changed following a late-day sell-off yesterday that carried the technically weaker coins to new multi-week lows. The top coins all remain under clear selling pressure although BTC is once again showing stability, holding up above the $7,000 level in the face of the altcoin-weakness. ETH has also been slightly better off than its smaller peers until the overnight dip, but we would need to see way more strength market-wide to consider changing our bearish outlook.
The broad downtrends clearly remain intact in the top coin’s markets and even though this week’s drift lower could be the part of a bottoming process, odds remain heavily in favor of another downswing. Our trend model is still overwhelmingly bearish on all time-frames, but since the prior swing lows are not in immediate danger in most cases, the consolidation could still continue and volatility might remain relatively low.
BTC/USD, 4-Hour Chart Analysis
BTC hit a marginal new low compared to last week’s minimum overnight but the relatively strong coin bounced back to its narrow range from yesterday. BTC is still clearly below its initial short-term resistance zone near the $7,400 price level, but its stability is a small plus for the whole segment, even as the long-term picture remains gloomy.
BTC is still on sell signals on both time-frames in our trend model, with support zones found near $7,000, $6,750, and $6500, and with resistance ahead near $7,400, $7,600, $7,800, and $8,200.
ETH/USD, 4-Hour Chart Analysis
ETH spiked below $140 together with the broader market after violating the $145 support, and despite the subsequent rebound and the coin’s recent stability, it could soon test its November low. The coming days will be crucial for ETH and the whole crypto market, as a short-term trend change would be essential to avoid another, possibly damaging downswing.
Our trend model remains on sell signals on both time-frames, with the next major support zone found near $130, and with resistance zones now ahead near$145, $160, and between $180 and $185.
XRP Remains Stable As LTC Approached Swing Low
XRP/USD, 4-Hour Chart Analysis
XRP continues to trade near the $0.22 level that has been in focus all week, despite the overnight spike lower, and it remains near the mid-point of its post-crash consolidation range. The relatively weak coin’s prior swing low is in no immediate danger, and its current stability could mean that it will remain neutral for a while in the wake of its disastrous November, but traders should continue to avoid opening new positions in XRP.
XRP is still on sell signals on both time-frames in our trend model, with support zones found near $0.21 and $0.20, and with resistance zones ahead near $0.23, $0.2475, $0.26, and $0.28.
LTC/USD, 4-Hour Chart Analysis
LTC is now trading below the key long-term $44 level after hitting a three-week low in late trading yesterday. The coin is threading with a new low, being very close to its November minimum, and since it has been showing the way for the whole segment in recent months, a technical breakdown would be an important negative sign for bulls.
LTC remains on sell signals on both time-frames in our trend model, with support zones now found near $38 and $34.50, and with resistance zones ahead near $44, $51, $56, and $64.
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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.