The major cryptocurrencies continue to trade under clear selling pressure in 2020, and while volatility remains relatively low, technicals continue to suggest further pain for bulls. With the broader downtrends still being intact, the recent failed rally attempts coupled by BTC’s current weakness make even a short-term trend unlikely, even as the prior swing lows are still not in danger. We still don’t see signs of broad technical stability, and while the consolidation period could continue, odds favor another leg lower in the coming weeks.
On a negative note, the coins that have been showing the way to the broader market in recent months, such as LTC and ETH are showing technical weakness yet again, confirming the ongoing downtrend, and hinting at another breakdown in the near future. Our trend model also continues to support the bearish case, being overwhelmingly bearish on all time-frames, and until we see clear improvements in the market, traders should remain defensive.
BTC/USD, 4-Hour Chart Analysis
BTC dipped below $7,000 today, as we expected after losing its relative strength over the holiday period, and the coin could be ready to test its recent swing low. While, from a broader perspective, the coin is still in better technical shape than its closest peers, the recent technical shift in its market warrants caution. The coming days will be crucial for BTC and the whole segment, as trading activity will likely pick up across the board.
BTC is still on sell signals on both time-frames in our trend model, with support zones now found near $6,750, $6500, and between $6,000 and $6,100, and with resistance ahead near $7,000, $7,400, and $7,600.
ETH/USD, 4-Hour Chart Analysis
ETH continues to be weak from a technical standpoint, and although it remains well above its recent swing low, the bearish drift of the recent day make another test very likely in the coming weeks. The $130 level and the November swing add to the strong overhead resistance that weighs on the coin, and the strong long-term downtrend will likely lead to new lows soon.
Our trend model remains on sell signals on both time-frames, with major support zones found near $120 and $100, and with resistance zones ahead near $130, $145, and $160.
XRP And LTC Fail To Resist Sell-Off
XRP/USD, 4-Hour Chart Analysis
XRP continues to be stuck well below the $0.1930 level and even though it is still within its post-crash consolidation range, its long-term weakness means that another damaging downswing could be ahead. All eyes will be on the $0.1750 support that could trigger very heavy trading in the coin’s market, but with the December breakdown being intact, a trend change seems unlikely here.
XRP is still on sell signals on both time-frames in our trend model, with support zones now found near $17.50 and $0.14, and with resistance zones ahead near $0.1930, $0.20, $0.21, and $0.23.
LTC/USD, 4-Hour Chart Analysis
LTC has been leading the way lower following its recent brief resurgence, and it hit a new two-week low together with BTC, warning of a dip below the key $38 level. The coin broke below the weak short-term uptrend line that formed during the recent correction, and with its dire long-term technicals in mind, the coming weeks could see further steep losses.
LTC remains on sell signals on both time-frames in our trend model, with support zones now found near $38 and $34.50, and with resistance zones ahead near $44, $51, and $56.
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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.