The cryptocurrency segment has been experiencing its most bullish moment for a long time, because despite Monday's failed rally attempt, the best currencies have kept pace above their lows and launched another rebound. While this did not change the overwhelming overall picture, it confirmed the weakening of the negative momentum, at least in the case of relatively strong currencies and raised again the total market value above $ 130 billion.
The main currencies are now all above their weekend lows, with most of them trading close to their previous minimum of panic. A large move above these levels could create a bear trap formation, which in turn could lead to a larger correction. With that said, traders and investors should still consider only ultra-short-term positions given the still intact short and long-term trends.
BTC / USD, 4 hour chart analysis
After successfully testing yesterday's lows, Bitcoin has returned to the $ 4000- $ 4050 zone key, which also represents primary resistance, and even though the most valuable currency has failed to rise above, it is in the best technical position soon term since its breakdown of the keys below $ 5850.
The short-term downtrend is still clearly intact, but today's strength has been enough to trigger a neutral update in our trend model, although the long-term sales signal is still clearly present. Above the strong resistance in the $ 4000- $ 4050 zone, further areas ahead near $ 4450 and between $ 5000 and $ 5100, while support stands at $ 3600 with a crucial long-term zone near $ 3000.
ETH / USD, 4 hour chart analysis
Ethereum continues to be stuck below the $ 120 level and is still showing signs of weakness compared to BTC, and our trend model remains on sales signals on both sides. That said, the currency managed to resist above its Monday low, outperforming most of the smaller altcoin, and a rally above the primary resistance could trigger a correction on a larger scale even in Ethereum.
For now, traders and investors should avoid entering positions in ETH, but if the segment's broad rally continues, short-term positions could be considered after the defeat in recent weeks. The main support is still in the $ 95- $ 100 zone with further resistance ahead near $ 130, $ 150 and $ 160.
Altcoin still weak but Litecoin continues to drive
XRP / USDT, 4 hour chart analysis
Ripple once again recovered above the support / resistance levels of $ 0.355 and $ 0.375, following the larger, higher market, and the currency managed to avoid a long-term sales signal in our historic collapse in the segment. With that said, the short-term outlook is still neutral and traders and investors should not enter new positions here. Key long-term resistance is in the $ 0.42- $ 0.46 area, with additional support levels at $ 0.32 and $ 0.30.
Litecoin / USD, analysis of the 4-hour chart
After showing the first signs of relative strength, LTC was the first major to recover above its previous low after the weekend selloff, triggering a buy signal in our short-term trend model. Despite the modernization, we continue to recommend ultra-short-term positions in the currency, given the dominant and bearish long-term pressures. Strong resistance is still ahead at $ 34.50 and $ 38, while support is close to $ 30 and $ 26.
XMR / USDT, 4 hour chart analysis
Monero is still struggling to get back well above the $ 60 level despite the large segment rally, as the currency continues to be among the weakest majors, along with EOS, NEO and Dash. The XMR is still in a strong short-term downtrend, trading very well below the previous bear market close to $ 80. Traders and investors should not yet enter positions here until it is materially a technical improvement, although a rally in the segment is likely to be expected in the next period.
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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.