Cryptocurrency Market Comes Within $4 Billion of New Yearly Low

The cryptocurrency segment continues to trade with a bearish bias, with almost all majors challenging their bear market lows in the past 24 hours. While a broad breakdown has been avoided so far, in the case of the top coins, there is still no sign of meaningful bullish momentum or a developing leadership, so odds continue to favor the continuation of the bear market.

That said, given the recent structural selloff, the oversold longer-term technicals, and the negative sentiment, a successful test of the lows followed by a larger scale correction is still possible here. Bitcoin’s relative stability is a positive sign here, and although traders and investors should remain defensive here, ultra-short-term positions with strict risk management could still be opened in strongest coins.

BTC/USD, 4-Hour Chart Analysis

The overwhelming majority of the coins are on sell signals on both time-frames in our trend model, but Bitcoin and Litecoin continue to show weak bullish sings, even though BTC is clearly below the key $4000-$4050 zone. The prior bear market low is not in danger for now, and the most valuable coin should hold up above $3600 to keep the short-term hopes alive.

Despite the possibility of a larger scale correction, the long-term setup is bearish, and even a short-term trend change would require a significant technical improvement. Below $3600, further strong support is found near $3000, while resistance is ahead near $4450 and between $5000 and $5100.

ETH/USD, 4-Hour Chart Analysis

Ethereum has been testing its bear market low and the $95-$100 support zone, confirming its relative weakness compared to Bitcoin yet again, but for now, the coin avoided a breakdown. With the deeply oversold broader picture in mind, our trend model is still on a neutral short-term signal, while being on a clear long-term sell signal.

Although it is still possible that we are already in a larger scale bottoming process, traders and investors shouldn’t enter positions here, with strong resistance ahead near $120, $130, $150, and $160.

Bears Clearly in Control Across the Board

XRP/USDT, 4-Hour Chart Analysis

While Ripple managed to hold up above the $0.32 support, it continues to be weak from a short-term standpoint, and it’s close to breaking out to its lowest level since September. The coin remains well above its bear market low, but without a quick improvement, our trend model will turn bearish soon on both time-frames. Resistance is now ahead at $0.3550, $0.3750, and $0.40, while further support is found at $0.30.

Litecoin/USD, 4-Hour Chart Analysis

Litecoin failed to recover above the $30-$30.50 support/resistance zone, as it continued to weaken from a short-term perspective, and the coin is now on a neutral short-term signal in our trend model, while still being on a clear long-term sell signal. LTC is still well above the $26 support and its previous bear market low, but given the segment-wide pressures, a test of the lows is possible in the coming days.

Dash/USD, 4-Hour Chart Analysis

While the relatively stronger coins are still trading near their initial panic lows, the laggards are stuck in damaging downtrends, with still no signs of stability. Dash is one of the most bearish majors, and the coin fell below the $75 level today, hitting a fresh bear market low. Barring a quick recovery above $80, a move to the next major support zone near $60 is likely, and the coin remains on sell signals on both time-frames.

Featured image from Shutterstock

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.

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