It’s been a grueling weekend for cryptocurrency investors, with the major drifting lower in choppy fashion throughout the last three days, and although no real damage has been done to the technical setup, all rally attempts faded away so far. While the short-term price action is still mixed, the lack of bearish momentum and the relative strength in several coins continues to help the bullish case.
All eyes are on Bitcoin and Ethereum, with the most valuable coin still lagging the segment average, while ETH pulling its weight ever since the first signs of relative strength on Thursday. Bitcoin got close to testing the $9000-$9200 support zone yesterday, but another rally attempt started today in early trading as buyers stepped in yet again.
BTC/USD, 4-Hour Chart Analysis
The short-term correction remains dominant, but a rally above the Saturday high near $10,500 would confirm a swing low, which could lead to a quick rally to new highs after the correction. With that in mind, investors and traders could still add to their holdings, and short-term traders have a good opportunity to use yesterday’s lows as a stop-loss level, with targets ahead at $11,300, $11,750, and $13,000
ETH/USD, 4-Hour Chart Analysis
Ethereum is clearly outperforming BTC, and the coin not just held up above the Thursday lows during the weekend, but it’s also edging closer to the upper boundary of its broad declining trend, pointing to a possible break-out in the coming days. As the long-term momentum is neutral, investors could still add to their holdings, and traders could also play the break-out here. Support levels are still found at $780, $740, $625 and $575, while resistance is ahead near $910 and $1000.
Altcoins Diverging in a Bullish Fashion
LTC/USD, 4-Hour Chart Analysis
As we have been pointing out throughout the correction, price action and market internals remained consistent with an orderly pullback within a new bullish cycle. Volatility remained muted, correlations are also low despite a few spikes higher, and the early leaders of the rally are still showing strength.
Litecoin is pushing higher, showing clear signs of buying pressure, as it is still spearheading the move, together with ETC. The $250 level is still ahead as a high obstacle, but should the segment stabilize, even more, a break-out could be imminent in LTC. A short-term resistance level is at $235, while above $250, targets are at $280 and $300.
While Ripple remains the most notable laggard, with EOS, Stellar, Cardano, and Bitcoin Cash losing ground to the leaders, we expect the segment to recover from the correction soon, as several coins are showing encouraging signs, such as NEO, IOTA, and Monero.
With that in mind, stay tuned for our detailed technical analysis later on today.
Featured image from Shutterstock
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
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