The cryptocurrency segment is finally showing the first signs of strength after the weekend selloff that has brought most of the majors to new lows in the bear market. Compared to the sharp decline in the last two weeks, the downward momentum has been relatively weak and some of the best currencies have managed to rise back to or above the previous lows.
Even if the market is still overwhelming in a long-term perspective, a large movement above the previous lows would confirm a short-term bear trap model that could be the basis for a stronger rebound, especially in the most unsold currencies.
The short-term picture is clearly oversold in the segment, and given the horrible sentiment, it is likely that at least one consolidation phase is very likely in the current bear market. That said, long positions should only be considered as short or ultra-short term positions with strict risk management, at least until a short-term trend change is confirmed.
BTC / USD, 4 hour chart analysis
Bitcoin has recovered briefly above $ 4000 after yesterday's strong rebound, and continues to trade well away from its low and $ 3600 support. While the event is encouraging from a short-term perspective, a clear move would be needed. above the $ 4000- $ 4050 zone to confirm the possible formation of bear traps.
For now, BTC is still selling signals on both times in our trend model, with declining trends clearly intact both in the short and long term. Additional resistance levels above $ 4050 are close to $ 4450 and between $ 5000 and $ 5100, while crucial long-term support is close to $ 3,000.
ETH / USD, 4 hour chart analysis
Ethereum also remained below its previous bearish market close to $ 120, despite the rebound, but it is also deeply oversold by a short-term outlook with the clearly weakened bear momentum. While ETH remains on the sell-offs of both times, a stronger rise remains likely next week, although a short-term trend shift is far from a technical standpoint.
However, traders should only consider the very short-term positions, with the main support still in the $ 95- $ 100 zone and with a further resistance close to $ 130.
Litecoin recovers the $ 30 level when Ripple joins Bounce
XRP / USDT, 4 hour chart analysis
While Ripple lost its relative strength in recent days, at least in the short run, the currency managed to hold well above its previous downside. XRP also rebounded with the broader market and climbed above the resistance levels of $ 0.355 and $ 0.375, although it remained well below the long-term key zone $ 0.42 – $ 0.46 .
Although the long-term trend is still neutral, the rebound was not enough for an update over the short-term time frame, while traders and investors should not yet enter new positions, with support levels now at $ 0, 32 and $ 0.30.
Litecoin / USD, analysis of the 4-hour chart
LTC is trading at its previous lows near the $ 30 level, showing signs of relative strength, to date, but this was not enough to trigger a short-term purchase signal. The short-term decreasing trend is clearly intact and the currency must remain above the minimum to confirm its initial strength. Strong resistance is ahead at $ 34.50 and $ 38, while yesterday's low is near $ 26.
XMR / USDT, 4 hour chart analysis
The other bear market leaders are still weak, with ETC, Dash, Neo, IOTA and Monero all stuck below their recent lows. As there is still no sign of a rising bullish leadership, the long-term negative trend still seems strong and investors should remain defensive despite the likely short-term rally.
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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.