Following Monday’s breakdown, most of the major cryptocurrencies are back in their weekend ranges. The recovery was, yet again, led by Litecoin. While LTC still seems to be on a short-term buy signal, the rest of the top coins appear to remain on sell signals, and the bearish overall outlook hasn’t changed despite the minor rebound.
The long-term downtrends remain intact, but the quick recovery could reignite the recent counter-trend move, even though the leaders are currently showing mixed signals. ETH continues to be relatively weak, and with BTC and XRP also among the weaker coins, the breadth of the rally attempt is debatable.
Let’s look at the broader picture.
Bitcoin recovered from Monday’s sell-off together with the broader market. However, it failed to retake the $3,800 level in a sustained fashion. With the recent spike in volumes, we could be watching fresh cash coming into the market, which is always a good sign.
While the primary support level near $3,600 is in no danger here, BTC is still stuck below the previously dominant rising trend line, and odds continue to favor the resumption of the ongoing bear market. Above the $4,000-$4,050 zone, strong resistance is still ahead near the $4,800 level, while further support is found near $3,450.
ETH is trading well below the key $145 level despite its quick recovery, and because of that, I would be cautious about making an entry position around this level.
While the coin is trading above the $130 level of resistance, a move towards the support zones near $112 and between $95 and $100 is still likely, with the prior bear market low being found near $80 and with key resistance zones ahead near $160 and $180.
While Ripple managed to join yesterday’s rally, the technical setup of the coin is unchanged. The coin is just as likely to come crumbling down as it is to move any higher. Without a move out of the broad consolidation pattern, directionless trading will likely continue, so traders and investors should still stay away from Ripple. Key resistance zones are ahead near $0.32 and $0.35, while support is found at $0.30 and $0.25.
Litecoin topped the recent swing high thanks to yesterday’s surge, hitting its next target zone near $56. While volume patterns are not convincing, the positive short-term trend could still continue, but traders should only consider relatively small positions here.
A sustained bullish move still seems unlikely in Litecoin. We can expect strong resistance above $56 until $64. Primary support is now found near $51, with further zones at $48 and $44.
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