Technical Analysis: Bitcoin Clears $15,000 as Altcoins Plunge

16:52 07/12/2017

The cryptocurrency segment has a two-faced session today, as Bitcoin’s amazing rise continues to make headlines, while the major altcoins are in in the red across the board with even the previous leaders turning lower. BTC’s dominant rally carried the most valuable coin to the $250 billion mark in market capitalization, while the total value of the coins jumped over $400 billion thanks to BTC’s exponential rise.

Timing the top of such a rally is close to impossible, but the uninterrupted vertical advance usually ends in a similarly spectacular plunge, so traders should keep their position sizes small, and investors should wait for a deep correction before adding to their holdings, even amid the strong FOMO. Those holding trading positions should use trailing stops to exit from the meteoric trend, while support levels are found at $11,300, $10,000 and $9000, with stronger levels at $8200 and $7700.


BTC/USD, 4-Hour Chart Analysis

IOTA has also experienced an exponential rally as the advance in altcoins narrowed to only a few coins yesterday, and the coin already fell 40% top-to-bottom, although it is still well above the levels seen even a week ago, following the spectacular break-out that was fueled by the Microsoft deal. IOTA remains extremely overbought despite the correction and we still expect the current cycle to bottom out at much lower levels with strong support only found at $1.50, and $1.1.

IOTA/USD, 4-Hour Chart Analysis


ETH/USD, 4-Hour Chart Analysis

Ethereum is testing last week’s lows amid the altcoin decline after bouncing back to our primary target at $480. The coin is clearly inside its long-term uptrend, but further corrective price action is likely before a durable move above $500. The long-term momentum indicators never reached extreme levels during this cycle, and we expect the currency to outperform during a coming correction with strong support levels at $400, $380, and $350.


LTC/USD, Daily Chart Analysis

Litecoin moved lower out of the topping pattern of the previous days, as the weaker momentum led to a selling below the key $100 level. The coin is still overbought regarding the long-term picture, and we expect a re-test of the $75 level, or even the $64 support before the next major bullish move.


DASH/USD, 4-Hour Chart Analysis

Dash continued lower today after breaking-below the short-term uptrend, as the coin remains “ahead of the curve” compared to the other major altcoins, while still having one of the strongest uptrends from an investment perspective. That said, we expect further correction in the market, as the overbought momentum remains the dominant factor here, with key support levels found just above $600, at $500, $470, and near $410.


XRP/USD, 4-Hour Chart Analysis

Ripple remains among the relatively weak coins and it continues to drift lower today after breaking below the weak rising trendline recently. The coin is now under the key $0.2250 level as well, and although the long-term setup remains bullish, and the momentum indicators are not overbought, we expect volatile range trading as the segment-wide correction runs its course. Support levels are found just below $0.20 and at $0.18, while resistance is ahead at $0.26 and between $0.30 and $0.32.

Ethereum Classic

ETC/USD, 4-Hour Chart Analysis

Ethereum Classic is also under meaningful selling pressure today after drifting out of a steeply rising trend. The coin is likely to correct below the $23 level during the current cycle after the stellar rally in November, with the next major support found at %18. Primary resistance is ahead at $30, with the all-time high at $32.


XMR/USD, 4-Hour Chart Analysis

Monero entered a volatile correction after moving up to the $300 level in the latter stages of the altcoin rally, and it tested the range extension level at $240 today. We expect further downside in the coin, as the long-term momentum is extremely overbought, with major support found at $200, $180, and $150, although the short-term uptrend is still intact.


NEO/USDT, 4-Hour Chart Analysis

NEO continued lower together with the other major altcoins, as it failed at the key $40 level once again, despite the still encouraging long-term picture. The coin is now trading under the $34 support, with another strong level at $30. We expect volatile range-trading to continue in the coming period, but a move towards the all-time high is likely afterward.

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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