Crypto Update: Market Suffers Blow As Altcoins Weigh

The cryptocurrency segment had a rough session as even though the Fed delivered on its promise to cut its benchmark rate for the third time in a row, the major coins all declined despite yesterday’s rally attempt. The top altcoins have been leading the way lower today, with ETH and XRP all losing but BTC also dipped below the key $9.200 level, and briefly even $9,000.

Despite today’s losses, the majors are still trading within their post-surge consolidation patterns, with BTC holding to a large chunk of its gains. That said, most of the altcoins failed to show strength today, and given the broad weakness since the initial surge, the bearish long-term setups remain intact. The counter-trend rally could still continue, but downside risks are still high, and traders should continue to be defensive.

BTC/USD, 4-Hour Chart Analysis

While BTC Fell below the key $9,200 support level, it managed to hold its initial pullback low from Saturday, retaining its short-term buy signal as well. The is clearly holding up above its prior broad consolidation range, but given the broad weakness in the segment, the coin could still resume its pre-surge downtrend, so traders should apply strict risk management rules.

The coin is still on a long-term sell signal in our trend model, with further support zones now found near $8,650, $8,400, and $8,200, and with further resistance ahead near, $10,000.

ETH/USD, 4-Hour Chart Analysis

ETH showed early signs of relative strength yesterday, but it failed to maintain its breakout above its weekend high, and it fell back to the key $180-$185 support/resistance zone. The coin couldn’t trigger a short-term buy signal, despite yesterday’s advance, and it remains suspect of another leg lower in the broader downtrend, should the key $180 level fall.

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 near $200 and $230.

XRP And LTC Pull…

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