The cryptocurrency segment had a rough day, with the major coins all losing ground following days of encouraging stability. With that, the short-term pullback remains the dominant pattern in the market, even though today’s moves makes a bearish reversal and the return to the broader downtrend more likely. The fact that BTC and LTC led the way higher today is a warning sign for bulls as the digital currencies managed to break out above their declining trendlines in recent weeks.
On a positive note, both of the leading coins remain above their long-term trendlines, and with ETH also holding up above its short-term trendline and the $160 price level, there is still ample support below the top coins. A short-term swing low is still possible in the case of the majority of the coins, as today’s losses were limited, and while our trend model is still negative with regards to the short-term time-frame, a broad long-term trend change is still possible here.
BTC/USD, 4-Hour Chart Analysis
BTC fell below the $8,600 and $8,400 support levels today and got closer to its previously dominant long-term trendline. That said, the most valuable coin is still well above the levels that would question the long-term breakout, and the relatively low volatility during today’s sell-off is also positive for bull here. Traders should still remain cautious, as the coming days could turn out to be crucial for the whole segment, and a short-term swing low is far from being confirmed.
BTC is on a short-term sell signal and long-term buy signal in our trend model, with support zones found near 8,400, $8,200, and $7,800, and with resistance ahead near $8,600, $9,200 and $10,000.
ETH/USD, 4-Hour Chart Analysis
ETH held up above the key long-term $160 level despite today’s broad decline and it remains in a clear short-term uptrend. The coin is stuck below the dominant long-term trendline, though, meaning that its current short-term strength doesn’t warrant new positions in ETH. All eye will remain on the initial support zone and the short-term trendline, as for now, all bets are off with regards to the long-term outlook for ETH.
Our trend model is now on sell signals on both time-frames, with major support zones found near $160, $145, $135, and $130, and with resistance zones ahead between $180 and $185 and near $200.
XRP Plunges Below Trendline As LTC Spikes Lower Too
XRP/USD, 4-Hour Chart Analysis
XRP broke below its short-term trendline today, getting very close to confirming the head & shoulders pattern that we have been monitoring for several days now. The coin remains relatively weak from a long-term perspective, but it is showing more stability on the short-term time-frame, which could prove crucial in the coming days.
XRP is on sell signals on both time-frames in our trend model, with support zones now found near $0.21, $0.20, and $0.1930 and with resistance zones ahead near $0.23, $0.2475, and $0.26.
LTC/USD, 4-Hour Chart Analysis
After holding up very well for several days, LTC led today’s decline, and it clearly broke below the key support zone near $56. The coin already got close to the next major support zone near $51, which is converging with the rising short-term and the declining long-term trendlines, elevating the importance of the coming days.
LTC is on a short-term sell signal and a long-term buy signal in our trend model, with support zones now found near and $51 and $44, and with resistance zones ahead near $56, $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.