Crypto Update: Market Recovers from Overnight Dip as Price Action Remains Bullish
The segment is showing clear signs of resilience, as bears cannot find footing in the market despite the brief selloffs. The majors turned yesterday after the US close as the SEC launched a probe into ICO’s, but the coins remained stable, with no major support levels falling durably amid the move.
The continued risk-off moves in traditional assets could also have weighed on cryptocurrencies, but for now, the weakness didn’t spill over to the segment again, and that is another positive sign for bulls.
BTC/USD, 4-Hour Chart Analysis
Bitcoin was still in the center of attention, providing the largest moves among the largest coins, as Ethereum remained in a relatively narrow trading range. BTC dipped below the short-term support at $10,500 following the SEC reports, but the bearish momentum was weak and now the coin is back above that level.
We and our trend model are still bullish on Bitcoin both short- and long-term, and we expect a test of the $11,300 and $11,750 resistance levels soon. The next target above those at $13,000, and support still found at $10,000 and in the key zone between $9000 and $9200, and while the broad downtrend is still intact, BTC will likely challenge the trendline in the coming week.
Altcoins Mixed but New Leadership is Forming
Correlations between the largest digital currencies remained low, and volatility is also muted, as bullish price action remains dominant, even considering the fact that there are undoubted laggards, with the likes of Ripple, Cardano, and Stellar struggling to gain traction.
IOTA/USD, 4-Hour Chart Analysis
As for the possible short-term leaders, IOTA is one of the most promising altcoins, as it keeps on gathering strength below a very strong resistance zone. A move above the declining trend right ahead, could open up the way towards $2.2, and after that the $2.35 and $2.6 levels.
XMR/USDT, 4-Hour Chart Analysis
Monero is also among the currencies with encouraging short-term setups, with a focus on the $300 level and the $335 resistance ahead, and the next target above those at $400. While a move below $280 would be a bearish short-term sign, the relative strength of the coin points to a likely continuation of the uptrend soon.
Traders should also monitor the early leaders of the recovery, Litecoin and ETC, as we expect them to join the rally in the coming period, even as the consolidation period could still last and short-term selloffs are in the cards.
Stay tuned for our detailed technical analysis later on today.
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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.