Bitcoin Could Have Smooth Sailing from Here, Technical Oscillator Suggests


The major cryptocurrencies are holding on to most of yesterday’s gains, despite the dip today in European trading. Ethereum is still above $200, Bitcoin is trading near $6500, while the other top coins are also off their recent lows. That said, the short-term outlook is still mixed, with several coins on sell and neutral signals in our trend model. Also, the broader declining trends are intact in the segment, with only Bitcoin and Monero on neutral long-term signals.

All eyes are still on ETH, as the moves of the second largest coins have been defining the trend in altcoins, with Bitcoin still being very stable compared to the volatility of the rest of the market. Given the steep drop of the past months and the oversold long-term momentum readings, a more durable bottom now might be in with regards to altcoins, and aggressive traders could play the buy the current short-term buy signals, but we still don’t advise full trading positions since volatility remains high and a trend change is not confirmed.

ETH/USD, 4-Hour Chart Analysis

Ethereum topped out near $225 overnight, falling short of the $235 resistance for now, but given the strong bullish momentum of the move and the, so far, limited pullback, we expect another leg higher with a likely push above $235 and a possible test of the $260 level.

The broader declining trendlines are still well above the current price level, with a weaker one fund near $280, and the dominant one being near $325.  For a major trend change the coin has to recapture several strong resistance levels, but for now, a stronger short-term rally seems likely.

BTC/USD, 4-Hour Chart Analysis

Bitcoin is still testing the $6500 level, and for now, the coin failed to gather meaningful momentum, but it remains on a short-term buy signal. With the crucial $5850 zone still not far below the current price, the long-term signal is neutral, and the danger of a structural breakdown still hasn’t passed, despite the largest coin’s recent stability. Resistance levels are ahead near $6750, $7000, and between $7200 and $7300, while support is found near $6275 and at $6000.

No Buy Signals for Litecoin and Ripple as Broader Downtrend Intact

LTC/USD, 4-Hour Chart Analysis

Litecoin is among the weaker coins so far this week, and it still failed to trigger a short-term buy signal, even though it managed to climb back above the $51 support/resistance level thanks to the broad rally. LTC remains inside a steeply declining longer-term channel, and below the key $56 level, but a breakout would open up the way to $64. Traders should still not enter new positions here, and our trend model remains on a long-term sell signal.

XMR/USDT, 4-Hour Chart Analysis

XMR is still showing relative strength after following Ethereum higher yesterday, and the coin is trading above the $108 level for now. The short-term buy signal is in place, but strong resistance is still ahead between $120 and $125, and above that near $150 while further support is found at $100.

XRP/USDT, 4-Hour Chart Analysis

Ripple has been trading in a relatively narrow range amid the larger moves in Ethereum and most altcoin, and the coin failed to trigger a short-term buy signal, as the technical setup is little changed despite the bounce. All eyes are on the $0.26 support and the $0.30 resistance, and for now, the long-term sell signal is clearly in place. Further resistance is still ahead at $0.313 and $0.32 while strong support is found at $0.23.

Featured image from Shutterstock

Disclaimer:  The analyst owns cryptocurrencies. He holds investment positions in the coins, but doesn’t engage in short-term or day-trading, nor does he hold short positions on any of the coins.

Let’s block ads! (Why?)


Source link

Previous Tezos Price Up 30 Percent Ahead of Mainnet Launch
Next Flood of payouts 'could crash Bitcoin market'

No Comment

Leave a reply

Your email address will not be published. Required fields are marked *