Bitcoin Price Searches for New Catalysts After Modest Q3 Gains

The cryptocurrency segment has been very quiet during the weekend with most of the major coin trading in progressively narrowing ranges with very low volumes. The total value of the market settled down near $220 billion, with only Ripple experiencing meaningful moves, hovering around the $24 billion market cap of Ethereum.

The short-term picture remains mixed, even as today the majority of the top coins is trading a tad lower, with Ripple, Litecoin, Monero, and Stellar remaining in bullish setups, and Bitcoin, Ethereum, and Dash maintaining a neutral short-term signal in our trend model in the face of the bearish long-term pressures. Given the current volatility compression, the next couple of days could see a major momentum move, and as the long-term setup is still bearish, odds continue to favor a selloff.

XRP/USDT, 4-Hour Chart Analysis

While Ripple triggered a long-term buy signal yesterday by confirming a swing low, the coin failed to gather significant momentum after the move, and now it’s back near the key $0.57 level that has been in focus for days. XRP is still clear of the $0.54 support level, with the short-term buy signal also being in place. Further support is found near $0.51 and between $0.42 and $0.46, while resistance is ahead at $0.64, at $0.68 and between $0.725 and $0.75.

BTC/USD, 4-Hour Chart Analysis

Bitcoin continues to trade near the $6500 level without a clear direction, still within the weak rising uptrend that developed since the August low. The current short-term relative weakness could mean another test of the $6275 support level this week, and a break below that would warn of a move towards $6000 and the key long-term zone near the $5850 level.

On the other hand, a move above $6750 would trigger another short-term buy signal, and as the broader triangle pattern is almost completed a significant move is expected in the coming weeks. Further support is found $6000 while resistance is ahead at $7000 and between $7200 and $7300.

Altcoins Still Mixed and Flat After Weekend Lull

ETH/USD, 4-Hour Chart Analysis

Ethereum failed to recapture the crucial $235 resistance level despite the several attempts in the past few days, and the coin continues to trade well below the previous rising trendline, but above the $200 support level, keeping it on a natural short-term single.

ETH also faces strong resistance at $260 and between $275 and $280, while with the dominant broader declining trendlines being found near that area too. Further support levels are found near $180, $170, and $160 and traders still shouldn’t enter new positions here.

NEO/USDT, 4-Hour Chart Analysis

NEO is still among the weakest majors being stuck clearly below the $21-$22 support/resistance zone, within a trading range that has been intact for the better part of September. The coin is on a sell signal on all time-frames and despite the recent stability the re-test of the August lows is the most likely scenario for the coming weeks. Support is found near $16.5 and $13.5, while further resistance is ahead near $24.5.

XMR/USDT, 4-Hour Chart Analysis

Monero is just holding on above the rising short-term trendline following a period of relative weakness, but it is still on a short-term buy signal in our trend model. The long-term single is neutral thanks to the strong rally off the August lows, but since still no leadership developed in the segment, traders should remain cautious with new positions here. Support levels are still found at $108, $100, and $80, while strong resistance is ahead between $120 and $125 and near $150.

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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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