Dow Drops As Cryptos Pop

As the choppy consolidation period in most of the majors continued in Asian trading today, with the overhead resistance still towering above Bitcoin and Ethereum. In another bullish turn of events, Litecoin, which has been gathering relative strength in recent days, as we pointed out yesterday, popped higher, taking out the crucial $170-$180 resistance zone.

As LTC has been the leader of the rally off the crash lows, the strength of the coin is a very strong sign that the advance has legs, and the rest of the segment will resolve the consolidation pattern in a bullish way.

Having said that, the dominant downtrend is still intact even in LTC before the much-awaited LitePay launch , and those short-term traders who entered positions should expect strong resistance again near the $200 level and the coinciding descending trendline. Support is now found in the same $170-$180 zone, while further strong resistance ahead near $250, and a weaker level at $225.

LTC/USD, 4-Hour Chart Analysis

The largest digital currency is also knocking on the door of the $9000-$9200 resistance zone that has been capping BTC’s advance in the recent period. The coin moved out from the short-term triangle pattern that formed in the past few days. While the trend change is still not confirmed, a quick rally to $10,000 is in the cards now in the coming days.

As volatility in traditional assets will likely spike in the coming hours, with the crucial Consumer Price Index and the Retail Sales report coming out in the US, the crypto-segment might also experience wild swings.

BTC/USD, 4-Hour Chart Analysis

Altcoins Showing Encouraging Signs

DASH/USD, 4-Hour Chart Analysis

All the majors are sporting gains today, and the early leaders of the rally, Dash, Stellar, and IOTA also showing strength, albeit not as much as LTC. Traders should also keep an eye on Monero that is still in a strong technical position, close to breaking the down-sloping trendline, while Ethereum Classic will likely take a break after its surge.

All in all, although further volatile swings are expected, and a new uptrend is yet to be established in the segment, the bullish signs that emerged last week are still present, and a new cycle is likely underway.

Stay tuned for our detailed technical analysis later on today.

Featured image from Shutterstock

Disclaimer:  The analyst owns cryptocurrencies. He holds investment positions in the coins, but doesn’t engage in short-term or day-trading, nor does he hold short positions on any of the coins.

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