The overbought condition that the most valuable coin built up since the correction low led to a swift correction today after BTC spiked to $4400 on Monday. The coin surged past our range projection target at $4150 before heading lower and completed a 150% rally in 4 weeks. Despite the current dip, the currency remains overbought, and we advise long-term investors to wait for more downside movement before re-entering the coin. That said, short-term traders could still be looking for opportunities in both directions, as volatility is expected to remain elevated, and the coin might test the rising short-term trendline near $3500 in the coming days.
BTC/USD, 4-Hour Chart Analysis
The recent advance sparked wild speculation regarding BTC with lots of analysts forecasting sky-high target prices, as sentiment got overly optimistic. The other majors were mostly left out of the part, but the current correction is affecting the rest of the market as well. The wave of selling could still push the majors lower, but we expect Bitcoin to be in the center of events, while the rest of the market will likely hold up better. Let’s see the short-term technical picture of the majors.
ETH/USD, 4-Hour Chart Analysis
ETH dipped below $300, and it is now headed towards the rising trendline currently at $260, still well within the uptrend. Below the trendline further support is found at $250, with resistance ahead at $285 and $330.
LTC/USD, 4-Hour Chart Analysis
Litecoin exited its short-term uptrend this morning, and fell below the $44 level, being dragged lower by the BTC correction. The coin remains in neutral territory regarding the long-term picture and we still expect the currency to head higher and test the prior high in the coming weeks. Support is now found near $42 and $38, with resistance ahead at $46 and $50.
DASH/USD, 4-Hour Chart Analysis
Dash is holding up well amid the selling wave, as the coin is still hovering around the $200 level, inside the dominant triangle consolidation pattern. A break-out of the pattern towards the prior highs is still likely in the coming period, with the long-term range-projection target found below the $260 level.
XRP/USD, 4-Hour Chart Analysis
Ripple remains relatively weak compared to the other majors, still following the long-term correction pattern lower. The coin broke below the $0.16 level today, and it might be headed towards a test of the $0.14 level, the lower boundary of the forming long-term base pattern.
ETC/USD, 4-Hour Chart Analysis
Ethereum Classic is also moving lower with the other majors, just trading above the lower boundary of the key support zone around the $14 level. The long-term correction pattern remains intact, with strong resistance ahead at $16 and at $18. Investors could still add to their positions here, as the long-term momentum remains neutral.
XMR/USD, 4-Hour Chart Analysis
Monero is trading right at the $46 support, inside the short-term correction pattern. The coin is still among the strongest majors, and we expect a rally towards the prior highs near $58 in the coming period. Below $46, further support levels are found at $42 and near $37.
NEM/BTC, 4-Hour Chart Analysis
NEM has been trading in a volatile pattern around the key 0.0000575 level this week, and it got close to the 0.000065 level once again as BTC entered its correction. We still expect the coin to outperform Bitcoin and re-test the 0.00009 level in the coming weeks.
Featured image from Shutterstock