Consolidation Continues as Weekend Rally Fails but Support Levels Hold

The choppy, hard-to-trade period that we expected after the crash two weeks ago is still ongoing, as most of the major coins are trading sideways inside the range of the initial rally off the January 17th low. That said, the broader declining trend in the segment is clearly intact, and the continuation of the correction is still the most likely outcome, even as the long-term charts are looking more and more constructive.

Bitcoin started the day in a clearly negative fashion, while altcoins also got sold across the board, and the most valuable coin breached the $crucial $11,300 level in the process. Although the decline stopped, later on, the coin is trading near its intraday lows, and the weak rising trendline of the bounce is also close to the current price levels.

We still expect a move towards the crash lows with a possible dip below $9000 before the end of the cycle, but investors could still add to their long-term holdings near the main support zones. Above $11,300 strong resistance is found at $13,000 while support below $9000 is at $8200 and $7650.