The major coins pushed higher yesterday after the end of the Wall Street session, despite the severe stock market plunge, as the surge in volatility didn’t “infect” the segment this time around.
Although the advance ran out of steam before a break-out to new swing highs in the case of most the coins, the short-term support levels that we have been monitoring yesterday are safe, for now, keeping the short-term buy signals intact.
BTC/USD, 4-Hour Chart Analysis
Bitcoin has been leading the way higher once again, with Dash, IOTA, and Litecoin also showing relative strength. BTC got very close to the lower boundary of the key $9000-$9200 resistance zone after the short-term dip, and the bullish volume patterns and the lack of volatility during the correction point to a likely new swing high this weekend, even as correlations are still elevated among the majors.
The coin faces strong resistance near $10,000 as well, with the dominant broad declining trend also near that price level, while support is found at $8400 and near $7600.
ETH/USD, 4-Hour Chart Analysis
While the leadership of the rally seems ample for a broad rally, the weakness in Ethereum and Ripple is still the most worrying sign for bulls, and the lack of clear bullish momentum also warrants caution regarding short-term positions.
ETH is still struggling to exit the declining short-term trend, despite yesterday’s late-day bounce, and the coin is facing strong resistance near the $575 level and the February low. While the long-term setup is still encouraging, short-term traders should still away from new positions, with further support found $450 and $400, and resistance ahead at $625, and in the $740-$780 zone.
Altcoins Mixed with Pockets of Strength
DASH/USD, 4-Hour Chart Analysis
Dash has been showing relative strength in the last couple of days as we noted yesterday, and the coin is the only major that managed to climb to a new short-term swing high overnight, retaking the $435 resistance and challenging the declining trendline before the slight pullback today in early trading. Should the currency break-out above the trendline, a test of the $500 level is likely in the coming days.
LTC, IOTA, and recently surging EOS are also somewhat stronger than the sector average among altcoins, while Ripple briefly spiked up to the $0.68 yesterday in late trading, but sellers stepped in again. The third largest coin is now clearly the weakest from a short-term perspective, despite the oversold long-term momentum readings.
We still can’t conclude that a new short-term uptrend is established, but a move to new short-term swing highs in the leaders would cement the reversal, so this weekend could prove crucial for cryptocurrencies