Bitcoin Price Approaches $6,750 as Bearish Sentiment Subsides

The past 36 hours marked an important change in the behavior of the cryptocurrency segment, as several coins started to rise in a concerted fashion, with the likes of Dash, IOTA, Monero, Tron, and Cardano all moving above short-term resistance, and with the top coins also drifting higher. While the negative long-term trends clearly remain intact in the case of the major altcoins, several currencies got upgraded in our trend model with regards to the short-term signal.

Bitcoin is now on s short-term buy signal after clearing the $6750 level and climbing above $7000 today.  Ethereum remains the biggest drag on the segment, still trading clearly below $300 and on a short-term sell signal, lagging the market average and especially the coins on the move. On a bullish note, correlations are clearly breaking down, and the third largest coin, Ripple is still moving slightly on its own paths, already trying to tackle the long-term trendline.

BTC/USD, 4-Hour Chart Analysis

Bitcoin is trying to establish a broader rising trend after a period of relative strength, and although it already rose above the $7000 level, there are still important levels above. For now, the coin remains on a neutral long-term signal, but traders could play the developing trend.  Initial resistance is now ahead between $7200 and $7300, with a stronger zone between $7650 and $7800, while support is found, $6750, $6500, and near $6275.

ETH/USD, 4-Hour Chart Analysis

Not much has changed in Ethereum’s technical setup despite the segment-wide bounce, as the coin remains clearly in a short-term downtrend, although ETH managed to get above the $275-$280 resistance zone. That said, the $300 level is still ahead and the long-term break-down level at $400 is miles above the current price. Ethereum remains on sell signals on both time-frames, but a move above $300 could open up the way for a rally to $335 or even the strong $360 level.

Still Just a Short-Covering Rally, Despite Bullish Momentum

XMR/USDT, 4-Hour Chart Analysis

The widespread rally among altcoins is a bullish sign and given the still depressed sentiment and the oversold long-term momentum readings, a more durable could be underway. That said, long-term investors should still treat the rally as a counter-trend move in most cases, and they should wait for a confirmed trend change before re-entering full positions.

XRP/USDT, 4-Hour Chart Analysis

Ripple is the perfect example of the contrast between the short- and long-term trends as, despite the recent rally, the long-term trend is still clearly intact, and the coin is well below the structurally important $0.42 level. So while the coin could continue to gain ground in the coming weeks, odds still favor at least a re-test of the lows form a longer-term perspective.

LTC/USD, 4-Hour Chart Analysis

Some of the most oversold coins recorded stellar gains, such as Dash, NEO, and IOTA, and as several coins could build short-term uptrends, a bullish leadership could develop in the coming days. That could propel a more durable segment-wide rally, but with the likes of Liteocin and Ethereum lagging, traders should remain cautious. For now, we remain generally defensive given the bearish long-term setups, but the short-term outlook clearly improved.

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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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