The major cryptocurrencies are in the no-mans-land this weekend, as although yesterday’s positive divergences led to a broad oversold bounce in the segment, the coins are not out of the woods yet, with major resistance levels still towering ahead.
Bitcoin is still clearly leading the way for the top digital currencies, as correlations remained on a high level despite the bounce, still suggesting at least further consolidation before a durable rally.
BTC/USD, 4-Hour Chart Analysis
All that said, the most valuable coin is still hovering around the key $9000-$9200 zone despite the spike to $8400 on Friday, and a successful re-test or a higher low could lead to a short-term buy signal in the coming days after the deep correction. In case of a rally, the $10,000 level is the next hurdle, with further resistance at $10,500 and $11,300.
LTC/USD, 4-Hour Chart Analysis
For the recovery to resume, a clear leadership should emerge, breaking the correlation between the coins. For now, only Litecoin is showing clear signs of strength, as it stayed above the previously dominant declining trendline and rallied back above $180 afterward.
The coin is now on both short- and long-term buy signals in our trend model with resistance ahead at $200, between $225 and $235, and at $250, while key support below $180 is at $170 and $150.
Altcoins Still Mostly Bearish
ETH/USD, 4-Hour Chart Analysis
Ethereum is trading very similarly to Bitcoin, although on a bearish note, the coin is struggling to get back above event the first major resistance zone near $740 since the Friday mini-panic.
Short-term traders should still wait with opening new positions, but long-term investors could add to their holdings. Support is now found between $625 and $640, while further resistance is ahead at $780 and $845.
With only Monero trading above the broad declining trendline besides LTC, short-term traders should remain defensive here, as Ethereum Classic and Ripple failed to build up momentum after showing early signs of strength.
Dash has also been encouraging since yesterday’s bottom, but given the very narrow leadership, the market needs more healing before the correction could be considered done.