Crypto Market Update: Bitcoin Re-Slumps as Long-Term Technical Forces Prevail

The weekend bounce that carried the major coins higher by as much as 50% in one day faded away today, and cryptocurrencies are sporting double-digit losses yet again in relatively light and choppy Christmas trading.



The decline is technical in nature, with no major news releases driving prices, and with correlations being very high across the board. The largest coins are all holding up above their Friday lows, but the technical setup remains fragile and another leg lower in the correction is possible in the coming days.

Bitcoin

BTC/USD, 4-Hour Chart Analysis

BTC is trading near the primary support level at $13,000, being down by 20% off the rebound highs, but still 15% higher than the spike lows from Friday. Given the still bearish long-term picture, the most valuable coin could be headed below $10,000 in the coming days, with major targets for the correction found near $9000 and $7700.

Ripple




XRP/USDT, 4-Hour Chart Analysis

Ripple is in by far the strongest short-term technical position, although the coin is now below the steep uptrend line that developed following its recent break-out, as it is holding up well near the $1 level in the broad sell-off. That said, as the currency also reached extremely overbought readings during the recent move, investors should stay away from opening new positions in the coin, despite the current strength.

Major Altcoins

Ethereum/USDT, 4-Hour Chart Analysis


Litecoin is also among the relatively strong currencies, for now, but in case of another concentrated sell-off, LTC’s strength could be short-lived.  IOTA, Ethereum, Ethereum Classic, and Dash are all in bearish short-term trends now, while Monero is also close to breaking its short-term trend, as it is trading back at the $300 level.

All in all, as choppy trading is expected to continue in the coming couple of days, with a likely continuation of the broad correction, as the overbought momentum readings of the recent stellar rally still need to be cleared.


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