Cryptographic update: Bitcoin violates support, falls below $ 7000


Bitcoin has been the focus of attention so far this weekend, since after a period of relative strength the most valuable currency has been deployed under key short-term support yesterday. BTC has joined the rest of the market, as the movement has triggered a short-term sales signal in our trend model. Now, the short-term picture is overwhelmingly overwhelming, although the top 3 coins are still above the long-term structurally important levels that have been in focus for months.

While in the short term, most of the coins are slightly oversold and the altcoins have not followed the BTC today, traders should remain on the defensive here, although a stronger rebound is possible in the coming days. With Ethereum and Ripple still testing the key levels, and with relatively weak currencies that avoid a break so far, we expect trading to be very high in the coming days. Stop-loss orders will probably be triggered, while sudden peaks and a general increase in volatility are likely to occur.

BTC / USD, analysis of the 4-hour chart

Bitcoin failed to trigger a new short-term purchase signal after the recent increase and subsequent correction, and now the currency is close to forming a model of failed break, which would indicate another $ 5850 support test.

Traders should not enter positions here despite short-term oversold readings, even if the weakness of altcoins is a negative sign. The main support now stands at $ 7,000, with additional levels at $ 6750, $ 6500 and $ 6275, while the resistance is ahead between $ 7250 and $ 7350 and $ 7650 and $ 7800.

Altcoin Holding Up but Supports Look Vulnerable

ETH / USD 4-hour chart analysis

After the strong momentum has moved lower, the main realigns have been oversold in a short-term perspective and this weekend has led to a consolidation phase uncertain. Ethereum is testing the $ 400- $ 420 support zone for days, and while the lower limit of that zone is still pending, the currency can not leave the danger zone despite the gathering attempts.

With the short-term trend Clearly being negative, and the currency is on a sales signal in our trend model, traders should not place positions here. Below $ 400, support levels are found at $ 380 and $ 360, with the latter also representing the April low, while the primary resistance is ahead at $ 450 and other areas are close to $ 475 and $ 500.

Analysis of the XRP / USDT charts, 4 hours

Ripple remained stuck in a very narrow range this weekend, holding just above the key support area close to $ 0.42, and although BTC did not drag the currency further down the selloff, the short-term trend is clearly negative and the support zone remains in danger. A break below that zone could trigger a long-term sales signal and volatility could explode in the coming days. The primary resistance is close to $ 0.45, while additional support is between $ 0.30 and $ 0.32.

LTC / USD, 4 hour chart analysis

Litecoin is trading below the $ 75 level but has managed to keep the previous cycle low, even though it remains among the weakest currencies of all households in the time. It is likely that LTC will still enter another lower downtrend, even if a failed rupture and a strong reversal could trigger a countertrend move. The next major support area is near $ 64, while strong resistance is near $ 85 and $ 90

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Disclaimer: L & # 39; analyst possesses cryptocurrency. It holds investment positions in the currencies, but does not conduct short-term trading or day trading, nor holds short positions on any of the currencies.

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