The price of Bitcoin extends the slippage while the bulls struggle to keep the momentum alive


While the roster of the majors' early weeks triggered some short-term updates in our trend model, the bearish picture in the cryptocurrency segment has not changed and, for now, the move has stalled. The leaders of the rally, Ripple, Bitcoin Cash, EOS and Stellar are clinging to most of their earnings despite the withdrawal, but the larger currencies have failed to maintain the bullish momentum.

With the stronger currencies that survive above their last trading ranges, the break-out could continue, but until a larger rally develops traders should remain cautious with new positions as the downtrend to long term are intact in most cases.

XRP / USDT, 4 hour chart analysis

Ripple has been one of the strongest currencies lately and has briefly exceeded the $ 0.54 level before moving on to the current pullback. The currency is testing the $ 51 level again, but it is clearly above the previous trading interval, keeping the short-term purchase signal intact in our trend model, even if the neutral signal is also present. long term.

Traders could play the short-term trend here, but full positions are not yet recommended, given the still bearish segment trends. Strong endurance is ahead near $ 0.54, $ 0.57 and $ 0.64, while support areas below $ 0.51 are between $ 0.42 and $ 0.46 and close to $ 0.375 .

BTC / USD, 4 hour chart analysis

Although Bitcoin has tested the $ 6500 level over the past two days, it has not been able to recover the resistance level durably, so the short-term sales signal is still in place in our trend model. The relative weakness of the larger currency is a negative sign for the segment, but the current withdrawal is not serious and a new swing above $ 6500 would be an important technical improvement, at least in a short-term perspective.

Above the primary resistance level, other areas are ahead of close to $ 6750 and $ 7000, while support stands at $ 6275, $ 6000 and $ 5850. Traders and investors should not yet enter positions here, even after the slight technical improvement in the segment.

Altcoins Still Maning Sustained Momentum

ETH / USD, 4 hour chart analysis

While Ethereum briefly hit a new high swing, it failed to trigger a short-term purchase signal, and with the very strong resistance zone forward, the second biggest coin could be in a very hectic period. That said, the fact that ETH is clearly holding above the key $ 200 level is an advantage after the prolonged period of relative weakness.

All eyes are still on the resistance level of $ 235 and the long-term downtrend line near the current price level, and a lasting move above $ 235 could create a large-scale rally. For now, traders and investors should stay away from the currency, despite recent progress. Further strong resistance is ahead near $ 260, while support levels below $ 200 are found at $ 180 and $ 170.

LTC / USD, 4 hour chart analysis

Litecoin formed a model similar to that of Ethereum, briefly rising above the recent swing high, but failed to trigger an update of our trend model, which proved to be significantly lower than the resistance level of $ 56. it remains in a clear downtrend in the long run and until at least a change in the short term trend should not enter this position.

Dash / USD, 4 hour chart analysis

Dash also ran into a near $ 170 resistance after the recent encouraging rally and although the currency remained well above the key $ 150 level, it failed to show a bullish follow-through, confirming the sales pressure still apparent in the segment. With this in mind, there is still no evidence of healthy, confident leadership, so we remain cautious about the prospects for the coming weeks.

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Disclaimer: the analyst possesses cryptocurrency. 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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