The ETH-led altcoin rally that started during the weekend continued today, and the top altcoins all hit new multi-week lows thanks to a series of sudden spikes higher. The move triggered several short-term buy signals in our trend model, but as BTC hasn’t followed the broader market higher, and most of the smaller coins are also lagging behind, the bearish overall picture hasn’t changed.
ETH topped $200, XRP spiked up to the $0.30 price level, while LTC hit $75, but BCT remains stuck near the $10,000 level, and for now, the rally only qualifies as a counter-trend move in the ongoing larger-scale downtrend among altcoins. BTC is in a better long-term position, but with its broad consolidation pattern still being intact, sellers remain in control of the segment.
BTC/USD, 4-Hour Chart Analysis
BTC continues to trade in a broad triangle consolidation pattern, and now, the volatility compression hit extreme levels, with the most valuable coin trading in a very narrow range for over a week. BTC is holding up above the key $10,000 level, but the fact that it failed to join the altcoin rally casts a shadow on the outlook of the coming weeks.
Our trend model is still on a long-term sell signal, while being on a short-term buy signal, as technicals haven’t changed significantly in the past few days. Below the initial $10,000 level, support is found near $9.200, $8,400, and $8,200, while resistance zones are still ahead near $11,300, and $13,000.
ETH/USD, 4-Hour Chart Analysis
ETH established a new short-term uptrend and triggered a short-term buy signal in our trend model today, spiking above the $200 price level, and hitting a new more than one-month high in the process. Despite the rally, the coin remains in a broader downtrend, and the coming days will be crucial in avoiding a failed breakout pattern.
Our trend model is still on a long-term sell signal with support zones now found near $200 and between $180 and $185 zone, while resistance is now ahead…