Technical Analysis
Bitcoin Back to $6000 as Altcoins Stabilize
The cryptocurrency segment recovered following yesterday’s dip, but the performance of the major coins has been asymmetric once again. Bitcoin is clearly back in the driving seat, as Bitcoin Gold, the product of the latest fork, lost market share and interest. The price of the most valuable coin rose back to the $6000 level, just below its all-time high, with an almost double-digit jump today.
Despite the encouraging rally, the coin remains clearly overbought regarding the long-term picture and investors should stay away from opening new positions here, even as the short-term rising trend is still intact. The currency bounced off the convergence zone near the $5400 level, while below that further support is found at $5000 and $4650.
With Bitcoin’s dominance just below the 58% mark again, altcoins, in general, are little changed today, with only a few notable movers. NEO is trading lower by around 3%, while Monero is also weaker than the average with a 2% daily loss. The rest of the market is close to flat for the day, and given the recent negative correlation with BTC, the stability of altcoin prices is a welcome sign. Let’s see the details of the short-term picture.
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Ethereum
Ethereum’s market basically froze today, as the price of the token moved in a very narrow range around the $300 level. The coin failed to join the rally of Bitcoin and remained below the $315 level, the top of the lengthy trading range. ETH is still in a long-term uptrend, and a move towards the $330-$350 zone is expected in the coming weeks. Support levels $285 and near $250, while further resistance is ahead at $380.
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Litecoin
Litecoin drifted higher today, reclaiming the key $56 level in the process, but it’s still well below the key $64 level, the next major resistance. The dominant short-term consolidation pattern is still intact, and the long-term picture remains bullish, and we expect the resumption of the rising trend soon. Support levels are now found at $56, $53, and $51.
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Dash
Dash is among the weaker coins today, and the coin is still stuck below the key $300 level, although today’s move is far from being significant regarding the bullish long-term picture. While the correction pattern in the coin remains intact, Dash is expected to resume the rising trend in the coming weeks. Resistance levels are found near $300, $330, and $360, with key support at $265.
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FirstCoin
FirstCoin drifted higher yesterday and today, passing the key $15 level in the process. The next major resistance will be at $20 and in my opinion FirstCoin is only days from it. The dominant short-term consolidation pattern is still intact, and the long-term picture remains bullish, and we expect the rising trend continue. Support level is found at $14.
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Ripple
XRP settled down bear the $0.20 level after the recent violent moves, and it remains inside a declining short-term trend. As the coin remains in a positive long-term setup, investors could add to their positions here, but traders should wait until a new uptrend develops. Support levels are still found near the current price level and around $0.18 and $0.16, while resistance is ahead in a broad zone around $0.22 and above that near $0.26.
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Ethereum Classic
Ethereum Classic remains below the short-term support at $11, and the coin is still the weakest major regarding the long-term picture. Today’s quiet session didn’t change the negative short-term trend, but the currency held up above the $10 level after spiking to single digits several times recently. Strong resistance is also ahead at $12.50 and around the $13.50 level, with long-term support found at $9.
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Monero
Monero drifted lower after yesterday’s encouraging rebound, and it continues to trade with very low volatility, inside a lengthy trading range. The $100 level could be in focus once again in the coming period, as we don’t expect a break below $80 before the next leg of the long-term uptrend. Above $100 resistance is ahead at $125, and near $150 while further support is found at $68.
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NEO
NEO also trended lower today, but the momentum of the move was weak, and the coin found support near the middle of the short-term trading range, well clear of the key $27 level. Further support is found at $25, while resistance levels are ahead near $30, $34, and $40. The long-term setup remains encouraging, and we expect the post China-crash recovery to continue after the consolidation.
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IOTA
IOTA is showing relative weakness today after the strong rally earlier on this week, as the dominant declining trend is still intact. That said, the long-term picture is still encouraging, but traders should still wait with a clear break above the falling pattern before opening new positions. Support is still found at $0.35 while resistance is in the key $0.45-$0.48 zone, and near $0.56 and $0.64.
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