(+) Technical Analysis: Bitcoin Breaks Below $7000, Altcoins Pull Back, As Bitcoin Cash Jumps

Bitcoin continues to lose ground compared to altcoins, although today’s sell-off in the most valuable coin infected the rest of the segment with only Bitcoin Cash surging higher, and crossing the $800 level for the first time since late-August.

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BCH/USD, 4-Hour Chart Analysis

BTC dropped below $7000 and quickly got close to the short-term support level at $6700 as the decline accelerated.The long-term picture remains overbought for the currency after its recent stellar rise, and while the short-term MACD is neutral, risks are still skewed towards the downside and a deeper correction is expected in the coming period. Support levels are found below $6700 at $6000, $5800, and at $5400.

BTC/USD, 4-Hour Chart Analysis

NEO and IOTA are leading altcoins lower with double-digit losses, but Litecoin, Monero, Ripple, and Ethereum are also significantly lower, with only Ethereum Classic and Dash holding on to marginal gains after a positive start to the session.

The sell-off took the total value of the market below $200 billion again, and the expected volatility in BTC could cause more turmoil. That said, the long-term picture looks encouraging for the major altcoins, so let’s see how the short-term charts look before the weekend.

Ethereum

ETH/USD, 4-Hour Chart Analysis

Ethereum fell back to the previous dominant trading range in the recent hours after yesterday’s break-out, as the broad decline dragged the coin lower. The long-term uptrend remains intact despite the recent relative weakness in the currency, and we still expect the trend to resume the trend, with targets ahead at $350 and $380.

Litecoin

LTC/USD, Daily Chart Analysis

Litecoin entered a short-term correction after a strongly bullish period, and the coin spiked below $60 today after trading as high as $67 yesterday. The currency remains bullish on all time-frames and we expect a test of the $75 level in the coming period. Support levels are found at $56 and $53, while further targets are ahead at $82.50, and near $95.

Dash

DASH/USD, 4-Hour Chart Analysis

Dash reached the $350 level today in early trading, but the coin fell back to the $330 support/resistance level along with the other majors. With the long-term picture still being bullish, we expect the move to resume soon, with targets ahead at $360 and near the all-time high slightly above $400.

Ripple

XRP/USD, 4-Hour Chart Analysis

Ripple failed to follow through yesterday’s rally with a clear break above the zone around the $0.2250 level short-term picture is back to neutral today. The long-term setup is still bullish, but more sideways price action is possible before a sustained move higher. We still expect a rally toward the $0.26 and $0.30 levels in the coming weeks, but the correction in BTC could cause volatility in the currency, with support levels at $0.190, and near $0.18.

Ethereum Classic

ETC/USD, 4-Hour Chart Analysis

Ethereum Classic broke out to a new short-term high before turning lower with the broader market, and it got close to our next target near $16 during the move. The coin remains in a bullish setup despite the reversal, with further targets ahead at $18 and $23, and key support levels at $13.50 and below that at $12.50 and at $11.

Monero

XMR/USD, 4-Hour Chart Analysis

Monero breached our primary target near $125 entering a short-term correction that could see a re-test of the crucial $100 level. That said, we expect a move towards the all-time high near $150 in the coming weeks, as the coin remains one of the strongest altcoins from an investment standpoint. Support below $100 is still found near $80 and $68.

NEO

NEO/USDT, 4-Hour Chart Analysis

NEO tumbled back below the key $30 level after failing to confirm the break-out with a move above $34 yesterday. Despite that, the long-term is still encouraging and we expect a move towards $40 in the coming weeks after the current consolidation concludes. Key support levels are still found at $27 and $25, and investors could still add to their positions here.

IOTA

IOTA/USD, 4-Hour Chart Analysis

IOTA entered a short-term correction after it’s explosive move to $0.60, as we expected, and it’s now testing the key zone between $0.45-$0.48 yet again. A move towards $0.64 and $0.75 is likely in the coming weeks, but volatility is expected to remain elevated as BTC will likely correct further.

Featured image from Shutterstock

Source: https://hacked.com/technical-analysis-bitcoin-breaks-7000-altcoins-pull-back-bitcoin-cash-jumps/

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