With the major Asian markets still closed, trading volumes remain low in the cryptocurrency segment, and with that in mind, a decisive move out of the short-term consolidation patterns seems unlikely today. The majors are little changed in the quiet environment, leaving the technical patterns and the short-term downtrends intact.
Bitcoin continues to perform relatively well, and as the most valuable coin is closing in on the $5400 resistance, a renewed buy signal is possible in the coming days, which would be positive news for the whole segment regarding the fate of the broader counter-trend move.
That said, the fact that the major altcoin failed to benefit from Bitcoin’s strength warrants caution, and traders should still remain defensive towards the segment, even regarding the relatively stronger coins, while avoiding the laggards like Ripple.
BTC/USD, 4-Hour Chart Analysis
Bitcoin is testing the $5400 level in the quiet environment and it’s very close to breaking out of the bullish consolidation period and triggering a short-term buy signal in our trend model. The divergence between BTC and the rest of the market is widening, and the coming days will be crucial in deciding which trend will dominate the segment.
With the still clearly bearish long-term pressures in mind, traders should only consider smaller short-term positions while using the strict risk management rules, as the bear market is likely to resume even in BTC. Below the initial $5050 level, further support zones are found near $4850 and $4450, while the $5400 level is still ahead as short-term resistance, with the next target being found at $5850.
ETH/USD, 4-Hour Chart
Ethereum continues to be stuck below the key $160 resistance level, and while the coin is in safe distance of the primary support near $145, it is well within the declining short-term trend. Our trend model is also on sell signals on both time-frames, and with the bearish long-term technicals in mind, we continue to…