The technical setup in the cryptocurrency segment has been virtually unchanged for several days now, with relatively low levels of trading activity across the board. The major coins are still trading in the consolidation patterns that developed during the recent short-covering rally, with still only a few smaller coins reaching new swing highs. The fate of the rally attempt is still undecided, but on a negative note, BTC hasn’t been showing strength this week.
That said, LTC got close to achieving a new high and thus a short-term buy signal, while ETH also managed to rise above a key resistance zone, so bulls still have the hope that the =rally attempt will resume. Despite the current quiet environment, the long-term outlook remains bearish for the top coins, and barring a sustained and broad move to new highs, traders should still be defensive here.
BTC/USD, 4-Hour Chart Analysis
BTC has been trading above the key $9,200 level for the better part of this week, but the coins failed to get close to its recent swing high. The coin got close to the broader declining trendline due to its sideways drift, and while BTC is currently relatively weak compared to the other top coins, a breakout to a new swing high is still in the cards.
The coin is still on a long-term sell signal in our trend model, with further support zones found near $8,400, and $8,200, and with resistance ahead near $10,000.
ETH/USD, 4-Hour Chart Analysis
ETH briefly surpassed its recent short-term swing high, thanks to the upward drift of the past days, and the coin is now trading above the key $180-$185 support/resistance zone, even though the momentum of the advance is rather weak. The coin is still stuck in a broader downtrend and while days have been encouraging for bulls, odds continue to favor a move below the October low.
Our trend model is still on sell signals on both time-frames, with further support zones now found near $160, $145, and $130, and with resistance zones ahead near $200 and $230.
XRP Frozen As Litecoin Eyes $64
XRP/USD, 4-Hour Chart Analysis
XRP continues to trade in the close vicinity of the key $0.30 level, but the coin still failed to move sustainably above the resistance zone that has been holding it back for several weeks now. While the segment-wide developments make a breakout more likely, it remains one of the weakest majors from a broader perspective.
XRP is still on sell signals on both time-frames in our trend model, with support zones now found near $0.28, $0.26, and $0.2475, and with resistance zones ahead near $0.30, and $0.32.
LTC/USD, 4-Hour Chart Analysis
LTC has been very strong compared to the other majors over the past couple of days, and it got very close to the $64 resistance level and to hitting a new swing high. As the coin has been relatively weak for several months, the current move still has to be considered as a counter0tredn rally attempt, and traders should still not enter new positions here.
LTC remains on sell signals on both time-frames in our trend model, with resistance zones now found near $56, $51, and $44 and with the next major resistance zone ahead near $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.
