Cryptocurrencies had another calm day, until the end of the US session, at least, when a tweet from Donald Trump regarding North Korea caused turmoil in financial markets. Altcoins were sold and Bitcoin got bought after the announcement that reignited speculation about a possible “intervention” by the US. Most coins recovered quickly off their lows, but they trade slightly below their prior levels with ETC and Ripple showing strength during the move, while BTC’s price is just above $2700 for now. Before the move, Ripple led the way higher while the other majors were trading in narrow ranges throughout the day. While a risk-off period might be triggered today, we expect it to be a buying opportunity in altcoins rather than a trend change.
Bitcoin’s spiked above the $2750 level after a low-volatility period, and it is trading right at the key level that corresponds with the may high of the currency. BTC is on a short-term buy signal until it remains above $2650, but the long-term picture is still overbought, warning of caution after last week’s dip.
Ethereum is still in a bullish triangle consolidation pattern despite today’s spike lower, with the support zone near $300 holding on during the dip. The short-term picture is neutral, while the long-term trend is clearly bullish. More consolidation is possible before another sustained move higher, especially if the global news cycle turns negative after today’s events. The BTC pair fell as far as the 0.1125 support before bouncing back higher, but it left the long-term trend intact.
Litecoin was also spiked lower today in late trading, and the coin briefly traded below the $40 level, despite trading around $48.50 this morning. The short-term picture is still overbought, and we expect more consolidation before the uptrend could resume. Strong support is found at $38 and below that near $35.
Ripple broke above the $0.30 level in the Dollar pair and above 0.000115 against BTC after a long corrective period, triggering a buy signal. The short-term uptrends remained intact in both pairs despite the spike lower, as the coin bounced back after a relatively shallow correction, leaving the technical setup unchanged.
Dash spiked as low as $160 before rising back above the key $180 level, and settling down after the brief volatile period. The coin is still just shy of the all time high at the $200 level, and the long-term uptrend remains intact.
ETC remained relatively stable during the spike lower, only dropping a few percent lower, with the $20 support strongly holding the token. The $23 resistance, the previous high, remains a meaningful obstacle but the relative strength of the currency is a positive sign, and the long-term technical picture is also clearly bullish.
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