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The price of bitcoin drops by 10% in the correction at the market level

The counter-current rally has continued in earnest in the cryptocurrency segment in the last 48 hours, with the majors that have marked another short-term minimum and that have reached new correction highs. Some of the most unsold coins have driven the move so far, and the first leaders, like Litecoin and Ripple, have remained strong while others have joined the strong push of the moment, indicating a more sustained move towards the high after the recent rout in the segment .

That said, the broader downtrend is not in jeopardy in the case of the best currencies, and while further short-term gains are still likely, investors should consider their positions as short-term transactions, with at least a new minimum test. be the most likely scenario in the coming months. For now, our trend model remains in purchase and short-term neutral signals, but with long-term sales signals still in place across the board.

BTC / USD, 4 hour chart analysis

Bitcoin showed relative weakness today, despite the trade being clearly above the key area of ​​$ 4000 to $ 4050, and marking a new correction maximum. Despite the short-term weakness, the currency remains on a buying signal in our trend model with regard to the short-term time frame, despite being on a clear sales signal from a long-term perspective.

The targets for the counter-current rally are still ahead near $ 4450 and in the $ 5000- $ 5050 zone, and short-term traders could still negotiate on the long side, with the broader picture still oversold on the wake of the recent route, with further key support areas found near $ 3600 and $ 3000.

ETH / USD, 4 hour chart analysis

Ethereum led today's rally and the currency passed the $ 150 level and approached the strong resistance level of $ 160 which also coincides with two broader downtrend lines. We do not expect the currency to sustainably move the move above the strong resistance zone, and traders should reduce their short-term positions here.

A further strong resistance is approaching $ 180, while support is now close to $ 130 and $ 120, and despite the stellar rally, the long-term picture remains clearly bearish.

The rally remains in the long run with the start of the Christmas holidays

IOTA / USD, analysis of the 4-hour chart

While several major altcoins clearly have overbought from a short-term perspective, long-term trends are not affected by the move, showing the extent of the recent sale, which has caused historical losses throughout the segment. With the widest setting in mind, traders should reduce their positions in the overbought coins. The IOTA, which was among the first weakest currencies on the route, rose to $ 0.40 today, completing a 100% rally.

Despite the magnitude of the move, the long-term downtrend remains intact and, before a broader scheme of higher and lower highs is established, the odds will favor at least a new test of bear market lows.

LTC / USD, 4 hour chart analysis

Litecoin reached the initial target for the move at $ 34.50, while it again became overbought by a short-term outlook. While the countertrend will likely continue, short-term traders should wait for a pullback before entering a market, and yet, future positions should be treated as short-term operators with strict risk management. Support is still in the $ 30- $ 30.50 zone and close to $ 26, while further resistance is near $ 38

XRP / USDT, 4 hour chart analysis

Ripple has returned to the key support / resistance zone $ 0.42 – $ 0.46 in the long run, after pushing above $ 0.40 and similarly to Ethereum and Litecoin, the second largest currency is now overbought, and traders they should wait with long positions, even though the rally will probably continue. The long-term selling signal remains intact, with a further resistance close to $ 0.51, and with support found at $ 0.3750 and $ 0.3550.

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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.

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