The major cryptocurrencies failed to bounce back significantly following yesterday’s bloody session, and none of the top coins managed to recapture the broken support levels, warning of further weakness ahead. BTC edged higher today in Asian trading, but it gave back its small gains despite yesterday’s stability, and with that, the chances of a failed breakdown pattern forming in the segment are even slimmer.
The major altcoins are even worse with now ETH, XRP, and LTC all trading below their November lows in the wake of XRP late-day plunge. The smaller coins also remain under heavy selling pressure, and while today’s losses are relatively small, the coming days could see another spike in volatility due to the breakdown. Our trend model remains negative across the board on all time-frames, and even a short-term trend change would require a drastic shift in price action.
BTC/USD, 4-Hour Chart Analysis
BTC continues to trade in a narrow range that developed following yesterday’s plunge and while it remains above its November low and in a better technical setup, the outlook is bearish even for the relatively stable coin. A dip below the prior low is still likely
BTC is still on sell signals on both time-frames in our trend model, with support zones now found near $6,750, and $6500, and with resistance ahead near $7,000, $7,400, $7,600, and $7,800.
ETH/USD, 4-Hour Chart Analysis
ETH failed to leave the vicinity of the $130 level despite settling down following yesterday’s sell-off, and the coin looks ready to fall below the key support zone in light of the major technical breakdown. Bulls would need a sharp bullish shift in ETH’s market to avoid further, possibly steep losses following the rather lengthy consolidation phase.
Our trend model remains on sell signals on both time-frames, with major support zones found near $130 and $120, and with resistance zones now ahead near $145, $160, and between $180 and $185.