Crypto Update: Support Levels Continue To Fall As Plunge Deepens

The cryptocurrency segment remains under severe selling pressure, with the major altcoins losing significant ground once again in the past 24 hours. BTC has also been under pressure but it held up above its November swing low so far, despite the broad sell-off in the segment. The ongoing large-scale downtrend is still clearly intact across the board, and while the short-term momentum indicators are now oversold, downside risks remain high.

A wild counter-trend mover is now in the cards in the coming days, especially in the markets f the most oversold coins, such as ETH and LTC, but traders should stay away from entering new positions just because of that chance. Volatility will likely stay very high and market conditions can change very quickly. Our trend model continues to confirm the downtrends on all time-frames, and while BTC’s stability is still a plus, none of the smaller coins managed to join it, leaving the overall outlook gloomy for bulls.

BTC/USD, 4-Hour Chart Analysis

BTC is hovering just above its November low amid the bloodbath among the top altcoins, but the most valuable coin is also under pressure and new lows seem very likely in the coming days despite its relative stability. The coin violated the $6,750 support level, and now it’s eyeing the next key long-term support zone near $6,500, which could open up the way towards sub $6,000 prices in the coming weeks, should the bearish pressures persist.

BTC is still on sell signals on both time-frames in our trend model, with support zones now found near $6500 and between $6,000 and $6,100, and with resistance ahead near $6,750, $7,000, $7,400, and $7,600.

ETH/USD, 4-Hour Chart Analysis

ETH continues to lead the way lower together with LTC, from a short-term technical standpoint, although XRP now joined the ranks of the weakest coins as well. ETH broke easily below the very important long-term $130 level, and it’s now threatening with a move below $120 as well, with very little buying…

Source Link