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We have seen another attempt at rallying in the cryptocurrency segment in the last 48 hours, and while some coins have managed to score new rally highs, the best coins have not managed to gain significant ground, with the momentum of the countertrend that seems to vanish. The correlations and volatility remain relatively low, but the declining moment is a warning sign that most of the move is already behind us.
While there were signs of a weak bullish rotation, with Bitcoin leaving its short-term trading range, today's follow-through was weak. In addition to coins with the greatest momentum, such as Litecoin and Tron, there has been no significant technical progress on the market.
With this in mind, traders should reduce their exposure to the segment, as although the move remains likely, downside risks are rising and the risk / reward ratio is lower, especially in light of the lingering long-term decline in image.
LTC / USD, 4 hour chart analysis
Litecoin has completed the transition to resistance at $ 38 after hitting a new high swing as expected, and although the short-term uptrend is clearly intact, the currency is now overbought and traders should not enter new positions here.
A strong trend is ahead just above the price level of $ 40, and although further gains are still possible, given the strong long-term negative trend, the currency has been downgraded to neutral levels with regard to the short time frame term. Over $ 40 more resistance are close to $ 44, while support levels are close to $ 34.50 and between $ 30 and $ 30.50.
ETH / USD, 4 hour chart analysis
The price of Ethereum continues to be limited by the strong resistance level of $ 160, and the currency has failed to show significant momentum in recent days. While the short-term uptrend is intact and a rise up to $ 180 is still possible, the long-term downtrend is clearly dominant and the downside risks rise as a result of the strong countertrend.
All eyes are focused on the initial level of short-term support near $ 145, with additional support areas still close to $ 130, $ 120 and between $ 95 and $ 100, while the resistance above $ 180 is close to $ 200 .
Bitcoin: try the resistance zone but the movement does not reach the moment
BTC / USD, 4 hour chart analysis
Although yesterday's peak brought Bitcoin up to the $ 4000- $ 405 resistance zone, and the currency has left its short-term trading range positively, we have not seen a significant following in the most valuable currency market.
In our trend model, BTC still has a buy signal, but with the decelerating December swing and long-term long-term momentum readings are now liquidated, traders should not enter full positions in the relatively weak currency . Further resistances are close to around $ 4450 and between $ 5000 and $ 5050, while support below the $ 3600 key level is close to $ 3250 and $ 3000.
XRP / USDT, 4 hour chart analysis
While Ripple has rallied to the resistance zone near the $ 0.3750 level, it remains weak relative to the rest of the market and given the lack of bullish momentum, our trend model remains on a short-term neutral signal.
Traders should not place new positions here, and the long-term bearish trend will probably resume and a bear market minimum test is likely from a broader perspective. Above the primary resistance, a long-term key zone is still ahead of $ 0.42 and $ 0.46, while additional support is close to $ 0.32 and $ 0.30.
IOTA / USD, analysis of the 4-hour chart
The IOTA was among the first leaders of the rally, but in the last days it failed to reach a new high, given that the currency had a strong resistance close to $ 0.40. While the currency is clearly trading above the $ 0.35 level and remains in the short-term purchase signal in our trend model, the lack of momentum is the first warning sign that the countertrend is weakening.
Even if a move above $ 0.40 is still possible, with additional key levels close to $ 0.45 and $ 0.475, traders should reduce their positions here given the long-term hostile configuration.
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Disclaimer: the analyst possesses cryptocurrency. It holds investment positions in the currencies, but does not carry out short-term or day-trading transactions, nor holds short positions on any of the currencies.
