The cryptocurrency segment continues to trade with a bearish bias, with almost all majors challenging their bear market lows in the past 24 hours. While a broad breakdown has been avoided so far, in the case of the top coins, there is still no sign of meaningful bullish momentum or a developing leadership, so odds continue to favor the continuation of the bear market.
That said, given the recent structural selloff, the oversold longer-term technicals, and the negative sentiment, a successful test of the lows followed by a larger scale correction is still possible here. Bitcoin’s relative stability is a positive sign here, and although traders and investors should remain defensive here, ultra-short-term positions with strict risk management could still be opened in strongest coins.
BTC/USD, 4-Hour Chart Analysis
The overwhelming majority of the coins are on sell signals on both time-frames in our trend model, but Bitcoin and Litecoin continue to show weak bullish sings, even though BTC is clearly below the key $4000-$4050 zone. The prior bear market low is not in danger for now, and the most valuable coin should hold up above $3600 to keep the short-term hopes alive.
Despite the possibility of a larger scale correction, the long-term setup is bearish, and even a short-term trend change would require a significant technical improvement. Below $3600, further strong support is found near $3000, while resistance is ahead near $4450 and between $5000 and $5100.
ETH/USD, 4-Hour Chart Analysis
Ethereum has been testing its bear market low and the $95-$100 support zone, confirming its relative weakness compared to Bitcoin yet again, but for now, the coin avoided a breakdown. With the deeply oversold broader picture in mind,