The major cryptocurrencies are having a relatively quiet and bearish session so far, with still meaningful divergences between the stronger and weaker coins. As the US markets closed today in recognition of George H. Bush’s passing away, trading activity is expected to remain lower than average in the segment, especially following the volatility contraction of the recent period.
The overall picture in the market is still clearly negative, and although the relatively stronger coins remain well above their bear market lows, even a short-term trend change is far away, with the short-term swing highs from last week being out of reach, for now.
That said, current stability could still point to an ongoing bottoming process following the collapse in November, but traders and investors should remain defensive here, and only consider ultra-short-term positions, with strict risk management.
BTC/USD, 4-Hour Chart Analysis
Bitcoin settled down below the key $4000-$4050 zone following yesterday’s rally attempt, and although the volatility in the coin’s market is very low, the lack of bullish momentum is still a worrying sign for investors. Even considering the weakness of the past week, BTC remains among the relatively stronger coins, but as the prior swing high is well above the current price level, the short-term buy signal in our trend model is in danger.
Also, the long-term sell signal is clearly in place, and with that in mind, traders should remain defensive here, with strong support still found near $3600 and $3000, while above the primary zone, further strong resistance is ahead near $4450 and between $5000 and $5100.
ETH/USD, 4-Hour Chart Analysis
While Ethereum is still holding up above,