A hectic and bearish overnight session was followed by a strong bounce in the cryptocurrency segment, as the stock market, which experienced the largest sell-off in years, also rebounded. Bitcoin recovered above $7500 after hitting a low near $6000, and while most of the majors followed the largest coin, several currencies showed relative strength again.
Despite the strong correlation between the coins, Litecoin, Dash, IOTA, Ripple, and Stellar are all trading above last week’s lows and that leadership points to a weakening of the selling pressure, despite the new lows in most of the coins.
Bitcoin, on the other hand, is still stuck the previous low near $7650 following the widely watched SEC and CFTC hearings, as the long-term picture in the coin is now clearly oversold. While the downtrend is still intact the cycle low is likely in or very close, and investors could continue to accumulate the coin near the major support levels, although traders should still wait with opening new positions. Above $7650, primary resistance is between $9000 and $9200, while support is found between $6750 and $7000, and at $6150 and $5750.
BTC/USD, 4-Hour Chart Analysis
Ripple is among the relative stronger coins, as it only fell to a marginal new low during yesterday’s sell-off and now it is back above the $0.68 level following the bounce. The coin is oversold from a long-term perspective and we expect a durable rally to start soon, so investors and aggressive traders could enter positions near the main support levels. Resistance levels ahead at $0.85, $1, $1.25, and $1.5, while below $0.68, significant support is found at $0.42.
XRP/USDT, 4-Hour Chart Analysis
ETH/USD, 4-Hour Chart Analysis
Ethereum is trading right at the previous low near $740 after testing the $575 level yesterday. The coin is now getting oversold from a long-term perspective, but we expect the correction to continue, and a re-test of the lows is likely. That said, investors could be looking for early entry points near the main support levels on the short-term sell-offs, while traders should still wait before entering new positions. Support levels are still found at $625 and $575, while resistance above $740 is ahead near $850.
LTC/USD, Daily Chart Analysis
Litecoin has been the strongest major for several days now, and the coin maintained its relative strength during yesterday’s selloff and during today’s bounce as well. The digital currency recaptured the key $125 level again, and it’s likely headed above the next major level at $140. Long-term investors and aggressive traders could still enter new positions on the short-term sell-offs, as the long-term picture is still oversold, with further resistance ahead between $170 and $180.
DASH/USD, 4-Hour Chart Analysis
Dash is trading near the $500 level after the strong rebound today, and the coin only briefly fell below the prior low, and the encouraging recovery means that a bottoming process is likely underway. With the long-term picture being oversold investors could still add to their holdings. Resistance is head between $600 and $650 and around the $825 level, while support is found at $410 and $360.
ETC/USD, 4-Hour Chart Analysis
Ethereum Classic is only a tad stronger than Bitcoin from a technical perspective, trading right at the $18 level after hitting a new low near $14 during yesterday’s plunge. While the downtrend is still intact, the long-term picture is oversold, and we expect a durable rally soon, with further strong support at $16 and resistance ahead at $23.
XMR/USD, 4-Hour Chart Analysis
Monero bounced back above the $200 level after testing the previous key break-out level at $150, and the coin is now oversold from a long-term perspective. The currency likely hit a cycle low yesterday, and investors should add to their holdings near the main support levels, while traders should wait for a trend change before entering new positions. Resistance levels are ahead at $240, $280, and $300, while support below $175 is found at $150.
NEO/USDT, 4-Hour Chart Analysis
NEO turned higher right off the $64 support yesterday and it’s now trading back at the $100 level, with the long-term picture being neutral after the correction. We still expect the correction to continue, although the final low might be in, and long-term investors could already add to their positions near the main support levels. Resistance levels are ahead at $125 and just above $150, while support is at $80 and $64.
IOTA/USD, 4-Hour Chart Analysis
IOTA recovered quickly above the key $1.50 level, and it’s among the relatively strong coins yet again. The long-term picture is deeply oversold and a durable rally could be imminent. While the downtrend is intact, investors could still accumulate the coin, with resistance ahead just below $2, near $2.2, and at $2.35.