The cryptocurrency segment followed last week’s weekend price pattern very closely, as, after a bullish period towards the end of the weekend, the majors turned lower today in Asian trading. The top coins are still trading above the lower boundaries of their weekend ranges, but while a key technical breakdown still hasn’t happened, selling pressure is still apparent in the market.
BTC and XRP remain the weakest among the largest digital currencies, while ETH continues to show strength, despite the recent broad sell-off. As the weekend bounce failed to improve the coins’ technical setups, downside risks remain prominent, and traders should remain defensive here. Our trend model continues to confirm the bearish outlook as well, and barring a broad reversal, new lows are likely in the coming weeks.
BTC/USD, 4-Hour Chart Analysis
BTC continues to be relatively weak from a short-term technical standpoint, and it already dipped below its weekend low today, lagging the top altcoins yet again. The coin is trading well below the key short-term $8,650 level, within its prior consolidation range, which warns of an impending test of the October low, especially due to the segment-wide trends.
The coin is still on sell signals on both time-frames in our trend model, with support zones found near $8,400, $8,200, and between $7,600 and $7.800, and with resistance ahead near $8,650, $9,200, and $10,000.
ETH/USD, 4-Hour Chart Analysis
ETH is stuck in the key $180-$185 support/resistance zone, despite dipping below $180 during the recent sell-off. Today, the coin has been holding up clearly above its weekend low, and with that, it has been among the stronger majors from a technical perspective. That said, ETH continues to threaten with a key breakdown, and bulls would need much more evidence before re-entering its market.
Our trend model is still on sell signals on both time-frames, with support zones now found near $160, $145, and $130, and with resistance zones ahead…