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Yesterday's warning signals have proved to be correct once again, as several important altcoins have fallen below the August lows, leading to another down stage in the current downtrend market in the cryptocurrency segment. Ethereum was the most notable retarder, losing two digits and dropping below the key level of $ 180 for the first time since July 2017.
Bitcoin has held up well once again, and is still hovering around the level of $ 6275 which has been the focus of attention for almost a week now. The strong divergence between BTC and the rest of the market continued, with the market share of the largest currency breaching the 58% level, while the altcoin crashed across the board.
XMR / USDT, 4-hour chart analysis
Although correlations are still sky-high and volatility has risen as high as expected, there are also some positive signs in addition to Bitcoin's stability. Ripple managed to keep the August low despite its relative weakness, Monero is still well above the respective bearish market downside, and IOTA, DASH, EOS and Stellar are also holding back regulatory concerns.
That said, all the majors still have short-term sales signals in our trend model, and even the long-term downtrend trends are clearly intact, so traders should not put new positions here.
BTC / USD, 4 hour chart analysis
Bitcoin has continued to trade in a narrow range between the large selloff and the currency is still trading very close to $ 6275, without breaking the minimum since last week. The lack of downward momentum is a huge advantage for the crypts here, as the probabilities of BCTs holding the crucial $ 5850 zone are on the rise, although the test for such support is still likely in the coming weeks.
With this in mind, traders should wait with the opening of new positions even in the relatively strong currency until a short-term trend change is confirmed. In addition, the weakest support is close to $ 6000, while resistnace is ahead to $ 6500, $ 6750 and close to $ 7000.
All Eyes on Ethereum after break
ETH / USD, 4-hour chart analysis [19659002] Despite the huge losses of recent months and the lack of significant countertrend moves, Ethereum is still in a clear downward trend in the short term, with no signs of an imminent fund. The selling pressure is clear and this indicates a probable test of the next major support zone between $ 155 and $ 160, with resistance now leading to $ 180, $ 200 and $ 235. Since ETH was the undisputed leader in the recent selloff , an inversion could trigger a major segment-level rally, so short-term signals will become increasingly important in the coming weeks.
XRP / USDT analysis, 4-hour chart
The ripple has changed little compared to yesterday's prices, as buyers held the currency above the August lows, despite strong sales in the segment. The coin is likely to take out the minimum, but a quick recovery above could set up a more lasting fund. With that said, our trend model is still selling signals on both time intervals, and traders should not place positions here. Resistance is still ahead at $ 0.30, $ 0.313 and $ 0.32, while additional support is $ 0.23.
LTC / USD, 4-hour chart analysis
Litecoin confirmed its recent relative weakness and plunged below $ 50 and August low, reaching a new 12-month minimum in the process. The currency has confirmed the broad downtrend under way, and is now likely to head for a test of the next major support area near the $ 44 level. Traders should stay away from the currency, with key areas of resistance now close to $ 51 and $ 56
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Disclaimer: The analyst possesses cryptocurrencies. It holds investment positions in currencies, but does not carry out short-term or day-trading transactions, nor holds short positions on any of the currencies.
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