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Bitcoin Cash, Litecoin and Ripple Daily Analysis – 06/09/18

By:
Bob Mason
Published: Sep 6, 2018, 03:58 UTC

While Ripple's XRP bucks the trend in the early hours, Wednesday's sell-off continues to resonate, with some of the majors deep in the red early on.

Bitcoin Cash, Litecoin and Ripple Daily Analysis – 06/09/18

Bitcoin Cash Tanks

Bitcoin Cash tumbled by 15.93% on Wednesday, following a 0.37% fall on Tuesday, to end the day at $526.8, the start of September proving to be dire for the majors, Bitcoin Cash in the red on each of the first three days of this month.

Bitcoin Cash had a relatively range bound start to the day, rising to an early morning intraday high $633 before easing back to $620 levels, the first major resistance level at $645.87 left untested on the day.

A late morning broad based market sell-off saw Bitcoin Cash slide through the major support levels to a morning low $553.5 before getting hit by a second wave late in the day, falling to an intraday low $523.1 before steadying.

The slide in Bitcoin Cash and the broader market was attributed to news of Goldman Sachs putting its planned opening of a cryptocurrency trading desk on hold, suggesting that there may be less institutional money on its way into the cryptomarket than previously assumed, negative news doing the damage on the day.

At the time of writing, Bitcoin Cash was down 2.98% to $511, with Wednesday’s sell-off spilling into the early hours, Bitcoin Cash falling from a start of a day morning high $526.8 to a morning low $487.8 before moving back to $500 levels, support at day’s first major support level at $488.93 kicking in.

For the day ahead, a move back through the morning high to $560 levels would support a run at the day’s first major resistance level at $598.83 to bring $600 levels into play, though we will expect Bitcoin Cash to face plenty of resistance on any attempts to break out from $560.

Failure to move back through the morning high to $560 levels could see Bitcoin Cash take another hit later in the day, with a pullback to sub-$500 levels to call on support at the first major support level at $488.93 for a second time in play should sentiment fail to improve later in the day.

BCH/USD 06/09/18 Daily Chart

Litecoin Back in the $50s

Litecoin slid by 14.83% on Wednesday, reversing Tuesday’s 3.66% gain, to end the day at $57.7.

Following a range bound start to the day, Litecoin slid through the day’s first major support level at $65.57 and second major support level at $63.39 to a morning low $60.88 before a second sell-off late in the day saw Litecoin slide through the third major support level at $59.27 to an intraday low $57.41.

At the time of writing, Litecoin was down 3.92% to $55.42, Litecoin sliding to an early morning low $53.79 to call on support at the first major support level at $53.96 before recovering to $55 levels.

For the day ahead, a move back through an early morning high $57.75 would support a run at $60 levels, while we will expect Litecoin to steer clear of the day’s first major resistance level at $64.9 on the day, the broader market needing to settle from the latest sell-off.

Failure to move back through the start of the day morning high $57.75 could see Litecoin take a bigger hit later in the day, with a pullback through the first major support level at $53.96 likely to bring the second major support level at $50.21 and sub-$50 levels into play before any recovery.

LTC/USD 06/09/18 Daily Chart

Ripple Looking to Rebound

Ripple’s XRP fell for a 4th consecutive day on Wednesday, tumbling 15.49% to $0.27921, with sub-$0.30 levels hit for the first time since 17th August.

Tracking the broader market, Ripple’s XRP slid through the day’s major support levels to a morning low $0.29683 before taking a hit later in the day, with Ripple’s XRP sliding to an intraday low $0.278 before steadying.

At the time of writing, Ripple’s XRP was up 2.1% to $0.28474, Ripple’s XRP recovering from a start of a day morning low $0.26698 to a morning high $0.29227 before easing back to sub-$0.29 levels, the moves through the early part of the day leaving major support and resistance levels untested.

For the day ahead, a move back through the morning high $0.29227 to $0.2969 would support a run at $0.30 levels, while we would expect Ripple’s XRP to steer clear of the day’s first major resistance level at $0.3158, with Ripple’s XRP likely to face plenty of resistance on any run at $0.30 levels.

Failure to move back through the morning high to $0.2969 could see Ripple’s XRP reverse early gains, with a pullback through the morning low $0.26698 bringing the day’s first major support level at $0.2603 back into play, sentiment across the broader market to dictate whether more material declines can be avoided.

XRP/USD 06/09/18 Daily Chart

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About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.

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