The major cryptocurrencies are slightly below their highs from yesterday as they have been edging lower today in quiet trading. BTC’s relative strength continues to fuel the hopes of bulls, even though the major altcoins remain weak, technically speaking. The top coins are still not far above their lows from last week, and the broad downtrend in the segment is also clearly intact, despite the rally attempt and the short-term strength of BTC.
Our trend model remains on sell signals on both time-frames for the overwhelming majority of even the smaller coins, and while the counter-trend move, or at least the consolidation could still continue, downside risks remain high here. Traders should wait for a clear short-term trend change before entering new positions, as the broad weakness in the market still warrants caution.
BTC/USD, 4-Hour Chart Analysis
BTC continued to show relative strength in the past 24 hours, moving above its initial resistance zone near $7,400 and briefly topping even the $7,600 level as well. The coin is still in its post-crash consolidation range and while the coming weeks will still likely bring another bearish swing, the coin could extend its counter-trend move before that.
The coin 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 edged higher together with the broader market, but while the coin is still holing up above the key long-term $145, it remains relatively weak compared to BTC. The prior lows are not in immediate danger, though, but should volatility return, the $10 level could soon be tested, as the long-term setup is still clearly bearish.
Our trend model remains on sell signals on both time-frames, with support zones found near $145 and $130, and with resistance zones ahead near $160, between $180 and $185, and near $200.