The post-crash bounce that carried Bitcoin and altcoins higher in a concerted fashion, ended on Sunday, and the major cryptocurrencies are now under pressure again, with steep losses across the board. The largest coins are holding on above their prior lows, but correlations are still very high, and that points to a likely re-test of the levels seen during last week’s sell-off.
Ethereum remains the safe haven digital currency for now, as the second largest coin is further away from the lows, barely dipping below the $1000 level, while IOTA, Bitcoin, DASH, Monero, and NEO are among the relatively weaker coins, even if the differences are not significant.
Bitcoin is slightly above $10,000 today in late trading after plunging below $11,300 earlier on, with trading volumes increasing again after the relatively quiet consolidation period. With the long-term setup still suggesting the correction to continue, a move below $9000 looks likely in the coming days, with possible targets for the move at $8250 and $7650. That said, as the sell-off already cleared the overbought long-term readings, investors could accumulate BTC near the main support levels below $10,000.
BTC/USD, 4-Hour Chart Analysis
Ripple plunged back to the $1.25 level after bouncing back up to the declining short-term trendline, but the coin which was previously leading the market lower is now relatively stronger, and that could point to a successful test of the lows or even a higher high in the coming period. With that in mind, investors could still add to their positions, but traders should remain cautious as volatility will likely remain elevated.
XRP/USDT, 4-Hour Chart Analysis
ETH/USD, 4-Hour Chart Analysis
Ethereum is trading near the $1000 level yet again, and the relative strength of the coin is promising from a long-term standpoint. The short-term setup remains bearish, and as the coin is still overbought on the daily chart, ETH will likely continue the correction in the coming weeks providing better buying opportunities for investors and traders. Key support zones are still found near $850, $740, $625, and $575, while resistance is ahead at $1175.
LTC/USD, Daily Chart Analysis
Litecoin is trading in the crucial zone between the $170 and $180 levels that has stopped the December sell-off. With coin already being in a mature correction, a final bottom could be close in time, but a re-test of the $100 break-out level is still in the cards. Investors could add to their positions near the key levels, but traders should still wait until a confirmed trend change before entering new positions.
DASH/USD, 4-Hour Chart Analysis
Dash continues to be among the weaker coins and a re-test of the lows seem very likely in the coming days. Below the $600-$650 zone, further key levels are found at $500 and $400, while the rising long-term trendline also provides support around $500, and a dip below that is unlikely in this cycle
ETC/USD, 4-Hour Chart Analysis
Ethereum Classic is following the broader market lower as well, trading back below $30, but well above the crash lows. Investors could be looking for entry points near the major support levels at $25 and $23, while below the prior all-time high, further strong support is found at $18. Traders should still expect volatile conditions, as the segment-wide correction still weighs on the coin.
XMR/USD, 4-Hour Chart Analysis
Monero lost its relative strength in the last couple of days, as the correction resumed, and the $330 support also failed today. We still expect a likely re-test of the lows, with a possible dip to $200, but investors could accumulate the coin near the main support levels, while traders should stay away form new positions here.
NEO/USDT, 4-Hour Chart Analysis
NEO plunged below the short-term uptrend as expected, and the coin is now in a downtrend, while the long-term momentum remains overbought. With that in mind, a deeper correction still seems likely, and investors and traders shouldn’t open new positions here, with key support levels below $100 found at $80, $64, and $56.
IOTA/USD, 4-Hour Chart Analysis
IOTA got hit hard today, as the recent wallet-hack still weighed heavily on the coin, and now it is among the weakest majors, likely headed for a test of the lows from last week. The digital currency could still be in for a relatively early bottom, given the longer correction than the rest of the segment, but traders should still expect volatile swings. Investors could look for entry points near the main support zones just below $2 and $1.5, while