The bleeding in the cryptocurrency segment paused yet again overnight, and the major coins all stayed above their correction lows from early January, for now. Trading remains focused on technical levels, with BTC’s $10,000 price level being in the center of attention.
The crucial support/resistance zone around the historical price level acts as a magnet for the market, and bulls hope that this zone could be the base for the major rally in the most valuable coin. With the bigger picture in mind, it still seems likely that a test of the prior lows will happen in the coming days, while a possible dip below $9000 is also in the cards.
The week’s price action took the long-term charts even closer to oversold territory regarding the momentum indicators, and the persistent selling pressure hurt sentiment in the segment, but given the extent of the prior run-up, the correction could still have legs. So, despite the more favorable outlook, it’s still a long-term investors market, and only experienced traders should try to pick a bottom in the volatile environment.
BTC/USD, Daily Chart Analysis
Short-Term Technicals Still Decisively Bearish
After the breakdown of the weak rising trendline that defined the post-crash rally in Bitcoin and the segment, the short-term picture is clearly negative, and only a break above primary resistance at $11,300 would change the setup.
XRP/USDT, 4-Hour Chart Analysis
Altcoins are also under pressure, as Ethereum remains relatively strong, while Ripple, Litecoin, Dash, and IOTA are all performing in line with Bitcoin, with correlations still being very high today in early trading. XRP got very close to the $1 level during the slump, as we expected, and last week’s star Stellar also broke below the key $0.50-$0.55 zone that we have been monitoring yesterday. The coin bounced off the next support zone near $0.43 as expected,
Stellar/USDT, 4-Hour Chart Analysis
We will cover the most traded coins in detail in our technical analysis later on today. Stay tuned.
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.