Crypto Update: Coins Slightly Lower as Global Stock Sell-Off Weighs

Yesterday’s risk-off shift in traditional financial markets spilled over to cryptos during the overnight session, as the weakness in Asia translated into a dip in most of the majors. The pullback was also likely helped by new reports about the Chinese crackdown on the segment, but the losses are muted so far, and no major technical support levels have been violated yet, leaving bulls in control.

USD/BTC , 4 hours analysis chart

Bitcoin has been leading the market higher yesterday, and the coin topped $11,000 today in early trading, before turning lower amid the altcoin weakness. The most valuable coin is now back at the short-term support level near $10,500, with nor the short- or the long-term technical picture being changed by the move.

The currency is trading well above the recent correction lows and the line-in-the-sand zone between $9000 and $9200, so we remain positive on the outlook, despite the dip.

ETH/USD, 4-Hour Chart Analysis

Altcoins are also marginally lower today in European trading, with Ethereum still hovering within a narrow range just below the dominant declining trendline that we have been monitoring. The number two digital currency is still above the $845 level that has been in focus ever since the initial post-crash bounce, and even another test of the $740 level would leave the positive setup intact.