As Bitcoin plunged below $10,000 yesterday, nearing the crucial $9000 level, all of the majors followed the most valuable coin in the panic sell-off. Our trend model turned short-term neutral in most of the cases, while the long-term prospects also improved thanks to the deep and violent correction.
Bitcoin itself already traded at slightly attractive levels, as it breached our first possible targetfor the correction, but we expect a lengthy bottoming process with a possible dip to the $8200 or $7650 supports.
As for the short-term, the oversold rally initiated from the lower boundary of the declining trend channel, and a choppy, hard-to-trade consolidation period is likely ahead that could last throughout the weekend. Strong overhead resistance is found at $13,000, likely capping the advance for now, while the $11,300 support/resistance level could also be in the focus in the coming sessions.
BTC/USD, 4-Hour Chart Analysis
As correlations remained very strong, altcoins moved together with BTC with only a few signs of relative strength or weakness among the largest coins. Ripple, which was among the biggest losers percentage-wise, almost doubled from the main target for the move at $0.85, but now, the coin is already at the declining trendline, and the broad pattern is likely to continue.
Investors could still accumulate positions near the main support levels at $1.25 and $0.85, but traders should still be aware of the volatile swings in both directions.
XRP/USDT, 4-Hour Chart Analysis
With several coins already being in the latter stages of their cycle, such as IOTA, Litecoin, and Ethereum Classic, investors could be looking for entry points during the short-term sell-offs. That said the late leaders like Ethereum and NEO might be in for a longer correction, and short-term traders should still be cautious of the wild swings in the segment, especially when entering leveraged positions.
IOTA/USD, 4-Hour Chart Analysis
Stay tuned for our detailed technical analysis later on today.
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