Choppy market conditions remained dominant, as we expected, after the segment-wide crash and the subsequent spectacular bounce. Trading volumes plunged back to normal levels as the majors settled down, but correlations remained high across the board, and the short-term downtrend in Bitcoin and most of the largest coins is still intact.
The sector is headed into the weekend on a negative note, as the majors are trading near their short-term ranges, although the losses are muted so far, and the crash lows are far away from the current levels.
Bitcoin is trading right at the crucial $11,300 support/resistance level that we have been monitoring all week long, and the coin is now almost back to neutral regarding the short-term momentum. As the downtrend in the currency is still clearly dominant, and given the bearish long-term setup, we expect a move towards the crash lows before a more durable rally. That said, the outlook is now neutral after the deep correction, with strong support below $11,300 at $10,000, $9000, $8200, and $7650.
BTC/USD, 4-Hour Chart Analysis
Altcoins are still closely following the moves in BTC, trading in similar patterns since the onset of the crash. Ripple, which has been one of the most active coins of the week turned lower of the declining trendline after topping $1.60 during the bounce. The coin that collapsed more than 70% of its highs will likely stay within its downtrend in the next weeks, but the final low might already be in and investors could still add to their positions on the short-term sell-offs near $1.25 and $0.85.
XRP/USDT, 4-Hour Chart Analysis
ETH/USD, 4-Hour Chart Analysis
Ethereum is trading near the $1000 level, as it’s moving largely in line with the other majors, within the developing short-term downtrend. The coin remains overbought from a long-term perspective and we expect the correction to continue, so both investors and traders should wait for a more favorable setup before entering new positions. Key support zones are still found near $850, $740, $625, and $575.
LTC/USD, Daily Chart Analysis
Litecoin dipped back below the $200 level yesterday, and it failed to recover above it today, showing signs of relative weakness again. Alhtough the coin could be among the first majors to hit a final bottom, we expect further volatile sell-offs before the end of the cycle, and traders should remain cautious with new positions although investors could accumulate LTC on the short-term sell-offs near $125 and $100.
DASH/USD, 4-Hour Chart Analysis
Dash is also among the weaker coin after the crash and it trades right in the crucial support/resistance zone around the $825 level, as we expected. The coin will likely re-test the $600-$650 zone before the end of the cycle, as the correction is still ongoing, but investors could be looking for entry points near those levels and below that around $500, as the long-term picture is more constructive now.
ETC/USD, 4-Hour Chart Analysis
Ethereum Classic is still relatively strong from a technical perspective, holding up above the $30 level, after only briefly dropping below the key $23 support during the crash. We still expect the correction to continue in ETC, but the final low might already be in, and investors could already add to their holdings on the short-term sell-off near $25 and $23.
XMR/USD, 4-Hour Chart Analysis
Monero is the strongest major coin this week, holding up above the $300 level, and moving past the $330 resistance several times. Despite the strength, traders should still stay away from new positions here, as the broad correction in the segment remains intact and a re-test of the crash low at $240, or a dip to $200 is still possible, with further support found at $180, and $150.
NEO/USDT, 4-Hour Chart Analysis
NEO has been among the biggest losers of today’s sell-off as the overbought coin is getting closer to its rising short-term trendline. The currency is in a similar setup as Ethereum, and we expect it to undergo a deeper correction as well. Traders and investors should wait for a better risk-reward ratio before entering new positions, with key support levels found at $100, $80, $64, and $56.
IOTA/USD, 4-Hour Chart Analysis
IOTA lost some of its early technical strength today, as it failed to reclaim the $300 level, but the coin remains well above the December crash lows, and we still expect a relatively early bottom compared to the other majors. That said, traders should wait for a confirmed trend change before entering new positions, while investors could already look for entry points near the main support zones between 2.25$ and $2.35 and around $1.5, and the short-term zone just below $2.