The major coins found support near the Friday lows after the steep selloff of the previous days, with Bitcoin recovering above $7000, while Ethereum nearing the key $400 support/resistance level again. The segment settled down somewhat after the wild swings, but the bounce didn’t change the short-term technical setup. With the downtrend firmly being intact, traders should still stay away from taking on new positions
With no clear catalysts driving the moves, technicals are still dominating price action, and as sentiment is reaching negative extremes, a durable bottom is likely very close, especially with the long-term momentum being oversold in the case of most of the coins.
BTC/USD, 4-Hour Chart Analysis
Bitcoin stayed above its February low during the rout, even as several altcoins breached their respective lows and the total value of the coins fell below $250 billion. As volatility and trading volumes declined during the Easter weekend, BTC failed to leave the developed short-term trading range, with the $6750-$7000 support zone still being in focus today. Strong resistance is ahead near $7650 and at $8400, while further support is found near $6200 and just above $5800.
Ethereum is still struggling to find footing in the strong short-term downtrend, as the coin is hovering around the $380 support, with the key resistance zone around $400 capping the rally attempts of the last few days. The short-term sell signal is clearly in place, as the currency is still relatively weak compared to Bitcoin, despite the severely oversold long-term picture. Further resistance levels are ahead at $450, $500, and near $625, while support below $380 is near the $350 level.
XMR/USDT, 4-Hour Chart Analysis
As altcoins are still slowly losing ground compared to Bitcoin, there are only coins showing stability, with Monero being the strongest major from a technical perspective. The other coins are stuck in a clear pattern of lower highs and lower lows, and although sentiment is now extremely negative and the long-term outlook is encouraging, from a trading standpoint, the technical setup is still bearish considering the overwhelming majority of altcoins.
EOS, Stellar, and Cardano are holding up better short-term, while Litecoin is still above the February low along with BTC and XMR. As a bullish sign, there are several small-cap coins rallying in the face of the selling pressure, with the likes of Vechin, Binance Coin, Bitshares, and Verge decoupling from the broader market.
That said, there is still no strong leadership to lead a healthy rally in the segment, so traders should remain defensive until further signs of strength pop up, but long-term investors could still accumulate the oversold coins.
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Disclaimer: The analyst owns cryptocurrencies. He holds investment positions in the coins, but doesn’t engage in short-term or day-trading, nor does he hold short positions on any of the coins.