The past 24 hours saw another crucial bearish move in the cryptocurrency segment, with the majority of the top coins violating their prior bear market lows and starting another leg lower in the damaging downtrend. Even the relatively stronger coins turned bearish in our trend model with regards to the short-term time-frame while staying bearish throughout the recent consolidation period.
The top coins trading at their lowest levels in more than a year, and the total value of the market got close to $100 billion following the historic rout, and although the broader picture remains oversold, and sentiment is still excessively negative, for now, traders shouldn’t enter even ultra-short-term positions after today’s breakdown. Since no bullish leadership developed and the relatively stronger coin failed to maintain their bullish momentum, odds still favor the continuation of the bear market.
BTC/USD, 4-Hour Chart Analysis
Bitcoin broke down below the key $3600 and triggered a short-term sell signal in Asian trading, and it extended its losses below the prior bear market low since then. The coin is now likely headed for a test of the very important $3000 support/resistance level, with the bearish long-term setup clearly being intact.
Traders and investors should stay away from entering new positions here, even as the coin is still oversold from a broader perspective, with strong resistance zones above $3600 ahead between $4000 and $4050 and near $4450.
ETH/USD, 4-Hour Chart Analysis
Ethereum continued to show technical weakness compared to Bitcoin, and it also violated its prior bear market low and the key 95-$100 support zone. The coin is now bearish on both time-frames in our trend model, and traders and investors should still not enter positions here,