The counter-trend rally continued in earnest in the cryptocurrency segment in the past 48 hours, with the majors forming yet another short-term swing low and hitting new correction highs. Some of the most oversold coins have been leading the move so far, and the early leaders, such as Litecoin and Ripple remained strong while others joined the strong momentum move, pointing to a more sustained move to the upside after the recent rout in the segment.
That said, the broader downtrend is not in danger in the case of the top coins, and while short-term further gains are still likely, investors should treat their positions as short-term trades, with at least, a retest of the lows still being the most likely scenario in the coming months. For now, our trend model remains on buy and neutral short-term signals, but with sell long-term signals still being in place across the board.
BTC/USD, 4-Hour Chart Analysis
Bitcoin has been showing relative weakness so far today, despite trading clearly above the key $4000-$4050 zone, and scoring a new correction high. Despite the short-term weakness, the coin remains on a buy signal in our trend model with regards to the short-term time-frame, while being on a clear sell signal from a long-term perspective.
Targets for the counter-trend rally are still ahead near $4450 and in the $5000-$5050 zone, and short-term traders could still trade on the long side, with the broader picture still being oversold in the wake of the recent rout, with further key support zones found near $3600 and $3000.
ETH/USD, 4-Hour Chart Analysis
Ethereum has been leading today’s rally, and the coin got topped the $150 level and got close to the strong $160 resistance level which also coincides with two broader downtrend lines.