Crypto Update: Coins Break Resistance Levels Amid Middle East Tensions

The major cryptocurrencies have been gaining ground in recent days, on the heels of last week’s surprising escalation between the U.S. and Iran that led to a global risk-off shift and a resurgence of alternative assets. Gold hit its highest level since 2013, and the top coins also remained upbeat throughout the weekend, with especially XRP performing well today. All of the majors are in the green following the U.S. close, and several coins triggered short-term buy signals, breaking out above their post-crash trading ranges.

Some of the majors got bullish for the first time since the summer of last year, and the fact that several smaller coins joined the charge could mean that we finally have a more sustained counter-trend rally at our hands. As sentiment in the segment reached gloomy levels, there is still room for the rally to extend, but the broader downtrends remain intact in the segment, and while traders could enter new positions here, strict risk-management rules should still be applied.

BTC/USD, 4-Hour Chart Analysis

While BTC caught a bid together with the broader market, it failed to leave its short-term trading range, getting stuck below the $7,600 price level. While the coin is now trading above key short-term zone near $7,400, it remains it still needs to clear its Christmas swing high for an upgrade, despite the positive changes among the top altcoins.

BTC is still on sell signals on both time-frames in our trend model, with support zones now found near $7,400. $7,000, $6,750, and $6500, and with resistance ahead near $7,600, $7,800, and $8,200.

ETH/USD, 4-Hour Chart Analysis

ETH left its post-crash trading range, clearing the $130 and $135 resistance levels, and the coin looks ready to test the $145 level. Despite the short-term upgrade and its relative strength, ETH is still in a well-defined long-term downtrend. While now, a more sustained counter-trend move is possible, traders should only enter small positions here, as the downtrend is…

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