The major cryptocurrencies pulled back yesterday in late trading and extended their losses overnight, just to fully recover ahead of the U.S. open. BTC continues to be the strongest among the top coins, and it managed to hold up above its prior swing high and the key $9,200 price level despite the brief altcoin weakness. All in all, the rising short-term trends remain clearly intact in the segment, and the long-term outlook continues to improve.

Our trend model is still mixed, regarding the long-term time-frame, but it continues to confirm the short-term advance even though the likes of LTC, ETH, and XRP are still stuck below their recent highs.   While we can’t rule out a sharp reversal in the segment, and it’s too early to conclude that the long-term trend shifted bullish in the case of the top altcoins, we could see further technical improvements as soon as in the coming days.

BTC/USD, 4-Hour Chart Analysis

BTC briefly dipped below the $9,200 support level overnight, but the coin managed to get back above it confirming the breakout. BTC has been trading in a narrow consolidation range in the past 24 hours, and that hints at another leg higher, even as the short-term momentum readings are slightly overbought. Traders could reduce their positions or set closer stop-loss levels here due to the overbought readings, but the long-term outlook is now positive.

BTC is still on buy signals on both time-frames in our trend model, with support zones now found near $9,200, $8,600, and $8,400, and with resistance ahead near $10,000, and $11,300.

ETH/USD, 4-Hour Chart Analysis

ETH dropped back to the $170 price level overnight, from the close vicinity of the key long-term $180-$185 resistance zone, and today, it has been showing signs of relative weakness compared to the leaders of the rally. The coin is still trading in a bullish short-term trend, and a test of the broader declining trendline seems likely in the coming weeks.

Our trend model is on a short-term buy signal, while still being on a long-term sell signal, with major support zones found near $160, $145, $135, and $130, and with resistance zones ahead between $180 and $185 and near $200.

XRP Flirts With Buy Signal As LTC Tests Swing High Again

XRP/USD, 4-Hour Chart Analysis

Although XRP us still weak form a broader perspective, it has been showing early signs of short-term, strength today, but it still fell short of a renewed short-term buy signal.  The coin dropped below $0.23 before the broad recovery, and it remains well below its prior swing high and the $0.2475 resistance level.  Traders should remain cautious with XRP, even though anotehr volatile spike higher is in the cards here thanks to the segment-wide trends.

XRP is still on sell signals on both time-frames in our trend model, with support zones now found near $0.23, $0.21, and $0.20, and with resistance zones ahead near $0.2475, and $0.26.

LTC/USD, 4-Hour Chart Analysis

LTC has been leading the way higher, so far, today, but it still failed to clear its prior swing high despite its relative strength. That said, the coin looks set to confirm its long-term trend change, and it could be ready to test the strong resistance zone near $64. While the short-term momentum indicators are slightly overbought, traders could hold on to their positions here.

LTC is now on buy signals on both time-frames in our trend model, with support zones now found near and $56, $51, and $44, and with resistance zones ahead near $64 and between $72.50 and $75.

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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.

(Excerpt) Read more Here | 2020-01-30 20:23:36
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