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Bitcoin Cash, Litecoin and Ripple Daily Analysis – 18/07/18

By:
Bob Mason
Published: Jul 18, 2018, 04:40 UTC

The cryptomarket is turning bullish following an extended bearish trend that had left investors on the defensive. Following a second day of solid gains on Tuesday, momentum has continued this morning with resistance levels being tested.

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Bitcoin Cash in Search of $900

Bitcoin Cash gained 6.41% on Tuesday, following on from Monday’s 10.19% rally, to end the day at $852.8, 5-consecutive days of gains seeing Bitcoin Cash end the day at $800 levels for the first time since 22nd June.

Following a choppy start to the day, a mid-afternoon rally saw Bitcoin Cash break through the day’s first major resistance level at $834.47 to test the day’s second major resistance level at $871.23 with an intraday high $874.7 before pulling back to $850 levels.

While the recovery has been impressive at the start of the week, Bitcoin Cash has been here before and, continuing to fall short of the 23.6% FIB Retracement Level of $930 leaves the extended bearish trend intact, though a break through to $900 levels would signal the formation of a bearish trend reversal.

At the time of writing, Bitcoin Cash was up 1.81% to $868.2, with momentum from Tuesday driving Bitcoin Cash to a morning high $889.9, testing the first major resistance level at $890.8 before pulling back to $860 levels.

For the day ahead, a move back through to $880 levels would support another run at the first major resistance level at $890.8 to bring $900 levels into play for the first time since 21st June, a break through and hold at $900 affirming formation of a bearish trend reversal.

Failure to move back through to $880 levels could see Bitcoin Cash give up some of the morning’s gains, while we would expect any pullback to steer clear of the first major support level at $798.7.

BCH/USD 18/07/18 4-Hourly Chart

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Litecoin Hits $90

Litecoin gained 6.47% on Tuesday, following on from Monday’s 6.16% rise, to end the day at $88.92, with 3 consecutive days of gains consolidating Litecoin’s recovery to $80 levels.

Tracking the broader market, Litecoin pulled back to a late morning intraday low $81.55 before find support from a broad based market rally that took Litecoin through the day’s first major resistance level at $85.63 and second major resistance level at 87.92 to an intraday high $90.07 before a late pullback to sub-$90 levels.

Falling short of the 23.6% FIB Retracement Level of $98 left the extended bearish trend intact, though a move back through and hold at $90 by the day’s end today would affirm the formation of a bearish trend reversal.

At the time of writing, Litecoin was up 2.38% to $91.1, with Tuesday’s rally driving Litecoin through the first major resistance level at $92.14 to a morning high $94.39 before pulling back to $91 levels.

For the day ahead, a move back through $93 would support a run at the first major resistance level at $95.37 to bring the 23.6% FIB Retracement Level of $98 into play, a hold at $90 levels by the day’s end bringing about the formation of a bearish trend reversal from 29th June’s swing lo $72.43.

Failure to move back through to $93 levels could see Litecoin pullback to test sub-$90 support levels, while we would expect Litecoin to steer clear of the first major support level at $83.62 on the day.

LTC/USD 18/07/18 4-Hourly Chart

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Ripple Holds on to $0.50

Ripple’s XRP gained 5.09% on Tuesday, following Monday’s 7.09% rally, to end the day at $0.50704, its first day’s end at $0.50 levels since 22nd June’s $0.53265.

A relatively range bound morning saw Ripple’s XRP leave the day’s major support and resistance levels untested, before a mid-afternoon broad based market rally saw Ripple’s XRP break through the first major resistance level at $0.4952 and second major resistance level at 0.5120 to an intraday high $0.52132, before pulling back to $0.50 levels by the day’s end.

Breaking through and holding at $0.50 levels will give the bulls hope of a bearish trend reversal forming, though Ripple’s XRP will need to break through the 23.6% FIB Retracement Level of $0.5528 to affirm a reversal formation.

At the time of writing, Ripple’s XRP was up 1.44% to $0.51432, with Ripple’s XRP moving through to an early morning $0.52986 high to test the day’s first major resistance level at $0.5298, before pulling back to $0.51 levels.

For the day ahead, holding on to $0.50 levels through the morning will be key to support a second run at the first major resistance level, with Ripple’s XRP needing to break through the second major resistance level at $0.5528 to test the 23.6% FIB Retracement Level of $0.5528 for an affirmation of a bearish trend reversal formation.

Failure to make a move back through to $0.52 levels could see a pullback to test sub-$0.50 support levels, with the first major support level at $0.4785 in play in the event of a pullback through the morning’s $0.50578 low.

XRP/USD 18/07/18 4-Hourly 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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