Crypto Update: Majors Break-Out as Short-Term Rally Resumes

in #cryptocurrency2 years ago

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The top coins are all significantly higher today, as following the shallow correction, the leaders of the move all hit new swing highs today. On another positive note Bitcoin successfully tackled the $4000-$4050 resistance zone, and that could give a boost to the whole segment even as the long-term downtrends are still intact in all of the key coins.

Our trend model continues to be overwhelmingly bullish from a short-term perspective, while still being negative regarding the long-term time-frame. With that in mind, traders could hold on to their short-term positions, but strict risk management rules still should be applied. Odds continue to favor the continuation of the bear market, and but the short-term trend could continue in the coming weeks, since the leadership of the rally is still healthy.

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BTC/USD, 4-Hour Chart Analysis

Bitcoin easily surged past the key $4000-$4050 resistance zone today, and with the short-term trend still clearly being bullish, a move towards the $4450 price level seems likely. The coin also faces a weaker resistance zone near the December high, and from a long-term perspective, the current move still has to be considered as a bear market rally. Trades could hold to their short-term positions here, with support levels below $4000 found near $3850 and $3600.

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ETH/USD, 4-Hour Chart Analysis

Ethereum confirmed its recent relative strength and lead the way higher in the segment as we expected, getting close to the next target at $160. The short-term uptrend is clearly intact, but given the hostile long-term setup, traders should be cautious with new positions in the wake of the recent rally. A move above $160 could lead to a test of the $180 level, while support levels are now found near $145, $130, and $112.

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XRP/USDT, 4-Hour Chart Analysis

While Ripple joined the broad rally today, it continues to show relative weakness compared to its major peers, and it’s clearly below its recent swing high while it is also struggling with the dominant declining short-term trendline.

That said, the segment-wide trend could still lift the lagging coin, but traders should continue to focus on the leaders of the move. Odds still favor the test of the $0.28 and $0.26 levels from a broader perspective, with further support levels found near $0.32 and $0.30, while resistance zones are ahead near $0.3550, and $0.3750.

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LTC/USD, 4-Hour Chart Analysis

Litecoin continues to trade in the short-term correction pattern that developed this week and although the coin is showing slight weakness on the short-term time frame, the uptrend remains intact and w new swing high is likely in the coming days. LTC faces strong resistance near the current price level, but a move above $52 could open up the way to to the next major zone near the $56 price level.

Primary short-term support is now found near $44, with more important zone near $44, while the line-in-the-sand $38 level is now in a safe distance. Traders could hold on to their short-term positions here but as the counter-trend move matures, positions sizes should be further reduced.

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EOS/USD, 4-Hour Chart Analysis

EOS confirmed its recent relative strength surging to a new swing high today and getting close to testing the next target zone near $4.50. Following the recent strong gains traders should start reducing their positions here, given the clearly bearish long-term technical setup. Support levels are now found near, $4, $3.80 and $3, while resistance above $4.50 is ahead near $5.

Happy Trading!!!