The cryptocurrency segment saw another rally attempt, but despite the new highs in the likes of Litecoin, Tron, and Binance Coin, the top coins failed to join the rally and the momentum of the move is suspicious. With 5 of the 5 coins making meaningful progress, the total value of the marker is little changed.
The weakening momentum and the still overwhelmingly bearish long-term picture justified several short-term downgrades in our trend model, and even though the counter-trend move could still continue, until we see signs of technical strength, traders should be defensive towards the segment . At the end of the day, the test is already underway.
BTC / USD, 4-Hour Chart Analysis
Bitcoin continues to trade near the $ 4000- $ 4050 resistance zone, it remains stable holding up well above the key support level near $ 3600 and the short-term trendline that is currently found near $ 3850.
BTC is now more vulnerable to a selloff, since it is now more vulnerable to a selloff. Above the primary zone, additional resistance is near $ 4450 and between $ 5000 and $ 5050, while supporting the $ 3600 level key is found near $ 3250 and $ 3000.
ETH / USD, 4-Hour Chart Analysis
Despite an intraday bounce, it is a short-term consolidation pattern and given the weakening momentum and the coin's relative weakness, the counter-trend move could be over, or a deeper pullback might be ahead. With that in mind, traders should stay away from entering new positions here.
A move above $ 160, towards the $ 180 level is still possible, but in light of the long-term trend. Initial short-term support is found near $ 145, with $ 95 and $ 100, and between $ 95 and $ 100, while resistance above $ 180 is ahead near $ 200.
Bitcoin Tests Resistance Zone but Move Lacks Momentum
LTC / USD, 4-Hour Chart Analysis
Litecoin experienced two failed momentum, the coin is now only on a neutral short-term trend signal. Here is no more evidence for a short-term downtrend than the bearish long-term.
The coin topped out above the $ 40 level, while respecting the broad declining trend, and with $ 30.50 and between $ 30 and $ 30.50, and with another strong resistance zone ahead near $ 44 .
XRP / USDT, 4-Hour Chart Analysis
The technical position has been unchanged for Ripple in recent days, and the coin is trading in a very narrow range between $ 0.3550 and $ 0.3750 levels, still showing relative weakness compared to the leaders of the counter-trend move and its main peers as well.
XRP is still on a short-term and a long-term trend with a key long-term resistance zone between $ 0.42 and $ 0.46 and is expected to be nearer to $ 0.32 and $ 0.30.
EOS / USD, 4-Hour Chart Analysis
While the EOS is bounced higher with the broader market in December, it will never be triggered. The coin entered volatility compression pattern since then, and although it was held up well during the pullbacks, the $ 3 level proved strong for bulls.
But the market-wide weakness in momentum, especially given the long-term picture, with short-term support found near $ 2,675 and $ 2.50, and further resistance ahead near $ 3.20 and $ 3.50.
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Disclaimer: The analyst owns cryptocurrencies. He holds investment in positions in the short-term or day-trading, nor does he hold short positions on any of the coins.