Crypto Update: Coins Edge Lower As Risk Assets Crash

The major cryptocurrencies started the week on a negative note in Asia, where all eyes were yet again on the coronavirus outbreak that led to serious lockdowns in Italy and South Korea over the weekend, The key stock benchmarks and other risk assets crashed in early trading, putting upward pressure on safe-haven assets, but the major coins haven’t been following the global trends, so far. A surge in volatility could be ahead for the segment this week, as the new phase of the pandemic unfolds.

The technical setup is unchanged despite today’s early pullback with the short-term corrective patterns being intact in most cases and with the freshly formed long-term uptrends still not being in danger. Our trend model reflects this duality too, with the short-term sell signals and the long-term buy signal being in place across the board, warranting caution for short-term traders.

BTC/USD, 4-Hour Chart Analysis

BTC topped out near the $10,000 price level, staying below its corrective short-term trendline. The coin continues to work its way through the extremely bullish sentiment readings that developed during the recent strong rally, but the price action in its market is in line with the continuation of the freshly-formed long-term trend. That said, traders should wait for a confirmed swing low before re-entering the market, due ot the still present downside risks.

BTC is on a short-term sell signal while still being on a long-term buy signal in our trend model, with support zones now found near $9,200, $8,600, and $8,400, and with resistance ahead near $10,000, $11,300, and $13,000.

ETH/USD, 4-Hour Chart Analysis

ETH continues to trade below the $275 resistance after testing it thanks to yesterday’s rally, but it remains clearly above the key long-term $260 level, still showing relative strength compared to its closest peers. With the smaller altcoins also being weaker than ETH, the breadth in the segment remains weak, meaning that further corrective price…

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