Crypto Update: Sideways Drift Continues as Bitcoin Fights with the $8400 Level


The largest coins attempted another rally towards the end of the weekend, but today the, not too strong, momentum faded and the majority of the majors is sliding lower today. The coins are in or close to the recent trading ranges, with the whole segment hovering in or near the recent ranges, without major changes in the technical setups.

The low-momentum environment means that the coins are still on neutral short-term trend signals, and traders should still wait before entering new positions, as the short-term trend remains corrective. That said, most of the majors are holding up above crucial support levels and the underlying bullish trend is intact while the overbought readings that developed during the late-April rally are being cleared. Out of the top coins, only Tron made significant technical progress, and until a clear leadership develops, choppy conditions will likely continue.

BTC/USD, 4-Hour Chart Analysis

Bitcoin finally showed some relative strength today, reclaiming the $8400 level, and reaching an intraday maximum near $8600. Despite the move, the coin is now back near the key support level, and with $8700 level still ahead as strong resistance, the trend signal remains neutral.  While the coin drifted out from the declining short-term trend, a new trend hasn’t established yet.

Short-term support is found near $8150, while the $7650-$7800 range provides long-term support, with resistance ahead between $9000 and $9200, $10,000, and $10,500.

ETH/USD, 4-Hour Chart Analysis

Ethereum is still hovering around the $700 level, still in a corrective phase following strong April rally, and the coin remains on a neutral trend signal as well. Resistance is still ahead between $735 and $780, with targets above that at $845 and $900, while support is found between $625 and $645 and between $555 and $575.

Total Market Value Stuck Below $400 Billion

IOT/USD, 4-Hour Chart Analysis

As altcoins gave back a large portion of the weekend gains, the total market cap of the coins is at $380 billion again, despite Bitcoin’s stability. On a negative note, the previous leaders of the rally, IOTA and EOS failed to make a move, and the latter is showing weakness today, trading near the correction low. All in all, price action points to further consolidation in the segment, and traders should remain patient until buy signals start ot pop up.

No Comments

Leave A Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.