bitcoin

Bitcoin Price Under Pressure as Market Slips Below $6600


The fact that Bitcoin hit a two-week low with a less than 4% decline today in early trading describes just how low volatility has been lately in the cryptocurrency segment. The major coins are still stuck in narrow trading ranges, and the bearish drift of the last couple of days carried most of them down to the lower boundary of those ranges.

As the energy continues to build in the market, we still expect a strong momentum move soon, and short-term traders should be aware that a range expansion would swiftly change market conditions in the segment. With that in mind, traders their position sizes even in the very quiet environment, particularly in the case of long positions, since bearish long-term pressures are still dominant.

BTC/USD, 4-Hour Chart Analysis

Bitcoin briefly traded below the $6400 level after taking out the $6500 support yet again, but buyers stepped in near the weak rising trendline in the area. The trendline is part of the broader triangle consolidation pattern that has been compressing the trading range in the coin for almost two months now.

We expect a move out of the formation soon, and odds still favor a move towards $6275, $6000, and possibly the key long-term zone near $5850. On the other hand, a break-out above the pattern could lead to a test of the $6750 and $7000 levels. For now, the coin is on neutral short- and long-term trend signals in our model and traders shouldn’t enter positions here.

Ripple’s Triangle Still in Focus

XRP/USDT, 4-Hour Chart Analysis

Ripple respected the upper boundary of the triangle consolidation pattern in the last couple days, and the coin drifted lower along the trendline, edging ever closer to the key $0.42-$0.46 support/resistance zone again.

Despite the losses, the technical setup is unchanged, with the short-term sell and long-term buys signals being in place, but a move out of the formation should happen in the coming days. The coin still faces strong resistance near $0.51, $0.54, $0.57, and $0.64 while further support levels are found near $0.375 and $0.35.

ETH/USD, 4-Hour Chart Analysis

Ethereum has been declining together with the broader market within its very narrow short-term range, getting further away from the $235 resistance level in the process. The two strong falling trendlines that we have been monitoring are now both near the $260 resistance zone and the coin is still clearly negative from a longer-term perspective.

That said, the short-term trend signal is still neutral, and above the primary support near $200, bulls still have the hope that a durable bottom is already in. Further support zones are found near $180, $170, and $160, while another strong resistance zone is ahead between $275 and $280.

LTC/USD, 4-Hour Chart Analysis

We saw a slight deterioration among the smaller altcoins as well yesterday and today in early trading, and several coins are in danger of violating key short-term support levels. With the broader negative trends being intact, the current setup warrants caution in Litecoin, which is close to testing the key long-term level near $56 again.

Dash/USD, 4-Hour Chart Analysis

Dash is also drifting towards the $170 support again, after hovering around $180 for several days, and the coin has been showing relative weakness in the past few days. Also, Dash is on sell signals on both time-frames in our trend model, and a break below $150 would warn of a test of the $150 level, while putting the bear market low near $130 in danger too.

Featured image from Shutterstock

Disclaimer:  The analyst owns cryptocurrencies. He holds investment positions in the coins, but doesn’t engage in short-term or day-trading, nor does he hold short positions on any of the coins.



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