Bitcoin Price Charting Narrow Path as Altcoin Selloff Continues

The cryptocurrency segment is experiencing an explosive oversold rally today, with Ethereum registering the largest gains as expected after leading the way lower during the recent steep selloff. The second largest coin got back to the $200 price level after plunging below the key long-term $180 support during the latest leg lower.

ETH/USD, 4-Hour Chart Analysis

Aggressive traders could enter short-term positions here in both the most oversold and the relatively strongest coins, but the broader longer-term downtrends remain intact in the majors. Ethereum might be ready for a stronger short-term rally, up to the $235 or even the $260, even though a more protracted bottoming process is likely after the steep decline of the recent months. The total value of the market recovered to $200 billion thanks to the double-digit move, and given the deeply bearish sentiment, a more durable bottom might finally be in.

BTC/USD, 4-Hour Chart Analysis

Bitcoin is testing the $6500 level, following the broader market higher, and even as percentage-wise the move is relatively small, the rally is a positive sign for bulls after the extended period of relative strength.

BTC is still not on a buy signal from a long-term perspective but traders could play the bounce that could reach up to the $7000 level in the coming days. Support levels are found at $6275, $6000, and $5850, while further resistance is ahead between $7200 and $7300.

Short-Term Picture Mixed for Altcoins amid Bounce

While several coins got upgraded in our trend model thanks to today’s move, and the momentum of the rally, EOS, IOTA, NEO, and ETC are still on sell signals even from a short-term perspective. Correlations also remain elevated, but on a positive note, there are signs that a bullish leadership could be developing, with Monero retaining its relative strength together with Bitcoin.

XMR/USDT, 4-Hour Chart Analysis

XMR remained one of the strongest of the top coins and managed to climb back above $100 yesterday, while pushing above the $108 resistance level today in early trading, triggering a short-term buy signal. While a broader trend change is not confirmed, today’s move also triggered an upgrade to neutral in our long-term trend model after more than 3-month. Resistance is now ahead between $120 and $125, and above that near the $150 level.

XRP/USDT, 4-Hour Chart Analysis

Ripple is still among the weaker coins from a longer-term perspective, but the fact that it managed to stay above the August low is a plus, and a more durable bottom could be in. A rally above $0.30 would be a great sign for bulls, but for now, the coin is only neutral short-term in our trend model. Further resistance is ahead at $0.313 and $0.32 while strong support is found at $0.26 and $0.23.

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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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