(+) Technical Analysis: Bitcoin Dumps and Pumps amid Broad Volatile Correction

The crypto segment has been in turmoil today, as the most valuable coins turned significantly lower, leading to a mini-panic, but they rallied strongly off their slows as buyers stepped in the second half of the session.

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Bitcoin fell as low as $5100, for a 15% correction top-to-bottom, but it is now trading near the prior short-term support at $5400. As the long-term picture remains overbought, investors shouldn’t open new positions here, but traders could play a likely move towards the $6000 level, although we still advise small sizes, as correction risks remain elevated.

BTC/USD, 4-Hour Chart Analysis

The other majors were also declining in early trading, led by Ripple, with only NEO and IOTA, holding up well during the sell-off.  Both of the latter coins faded away as the rest of the market recovered, but Ripple continued to suffer. For now, the long-term bullish picture is unchanged for the segment, but BTC’s overbought correction could still cause volatility in the coming period. Let’s see the short-term charts after the busy session.

Ethereum

ETH/USD, 4-Hour Chart Analysis

Ethereum dipped below the $300 level amid the broad move lower and it got close to the key $285 support yet again before the bounce. The coin is now getting short-term oversold, with the long-term uptrend being in no danger. The long-term MACD is still neutral, and a rally towards $380 is likely in the coming weeks, with primary resistance ahead at $330.

Litecoin

LTC/USD, Daily Chart Analysis

Litecoin has traded well below $60 and spiked below $56 today, probably hitting a short-term bottom that could set up a move above the $64 resistance in the coming week. The long-term setup is still encouraging, and even as Bitcoin might cause volatile periods, the coin is expected to trend higher, with the next target being at $75.

Dash

DASH/USD, 4-Hour Chart Analysis

Dash remained relatively stable amid the sell-off, but it dipped below the $300 level. The coin is still well inside the broad correction pattern that we have been monitoring, and the long-term setup remains unchanged. Short-term traders should still wait with opening new positions, but from an investment standpoint, the coin remains bullish, with strong support $265, and resistance ahead at $330 and $360.

Ripple

XRP/USD, 4-Hour Chart Analysis

XRP is in a freefall despite the encouraging news from the conference regarding the coin and after exiting the short-term uptrend it fell back to the $0.22 support, erasing most of its break-out gains. The long-term picture remains encouraging but more volatility is expected after today’s move, with the short-term picture clearly being oversold. Support is currently near the $0.20 and $0.18 levels, while resistance is ahead at $0.24 and $0.26.

Ethereum Classic

ETC/USD, 4-Hour Chart Analysis

Ethereum Classic is testing the $11 support today following the other majors lower, and it remains the weakest major, technically speaking. As the coin still faces primary resistance at $12.50, with further supply around the $13.50 level, short-term traders should still stay away from entering new positions here. Support below $11 is found at $9, with more resistance ahead at $16 and at $18.

Monero

XMR/USD, 4-Hour Chart Analysis

Monero followed the segment lower as well, and the coin is now back below $90 after trading briefly above the key $100 level during the weekend. Despite the dip, the currency remains on a short-term buy signal as the break-out from the declining trend is intact. Primary support is near the $80 level, while further resistance is ahead at $125. We still expect the bullish long-term picture to prevail, but more sideways price action is possible before a break above $100.

NEO

NEO/USDT, 4-Hour Chart Analysis

NEO acted promisingly amid the dip, and it continues to hover around the $30 level in a volatile fashion, leaving the long-term technical setup unchanged. The coin remains bullish barring a move below $25, with resistance level ahead at $34 and $40. The short-term picture is neutral, and the long-term momentum indicators are also near neutral after the volatile correction.

IOTA

IOTA/USD, 4-Hour Chart Analysis

IOTA recovered above the crucial $0.45-$0.48 support/resistance zone today in early trading, but now it’s back below the $0.45 level, despite the brief rally. The coin remains among the weakest majors and although the long-term picture is encouraging, short-term traders should wait with opening new positions until a bullish confirmation. Resistance is ahead at $0.56 and $0.64, while long-term support is found at $0.35.

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