Advertisement
Advertisement

Bitcoin Cash, Litecoin and Ripple Daily Analysis – 05/05/18

By:
Bob Mason
Published: May 5, 2018, 05:39 UTC

The cryptos are on the move early and Bitcoin Cash is leading the way as news of new investor money to hit the markets spurs the bulls into action at the end of the week. It's not going to be plane sailing, but the bullish trend continues to remain intact.

Alt Coins daily chart, May 07, 2018

Bitcoin Cash Eying $2,000

Bitcoin Cash consolidated 2 solid days of gains, with a 0.24% rise on Friday, ending the day at $1,514.9. The week’s 5.16% gain may not sound particularly impressive, but following April’s hard fork rally, the upswing going into the weekend bodes well for Bitcoin Cash.

After a slow start to the day on Friday that saw Bitcoin Cash slide to a morning low $1,453.2, calling on support at the day’s first major support level of $1,453.33, it was onwards and upwards from there, with a midday $1,548.5 high coming within touching distance of the day’s first major resistance level of $1,558.33 before easing back at the day’s end.

Steering well clear of the 23.6% FIB Retracement Level of $1,347.5 and a 2nd consecutive day’s close at $1,500 levels keeps the bullish trend formed back at 6th April’s 600.1 intact and there’s still 10-days to go before the hard fork.

At the time of writing, Bitcoin Cash was up 5.49% to $1,598.8 in what’s been a better start to the day than in recent days, an intraday high $1,610 in the last hour a new swing hi in the extended bullish trend, with improved market sentiment through the week supporting the latest moves.

With Bitcoin Cash breaking through the day’s first major resistance level of $1,557.87 to test the day’s second major resistance level of $1,600.83 before a pullback to sub-$1,600 levels, today’s moves will likely draw in investors, with Bitcoin Cash now having $2,000 levels in its sights.

Failure to move back through the morning’s high and break free of the 2nd major resistance level could see some pullback later in the day, but with last week’s gains on the lighter side and the hard fork yet to come, the day’s first major support level of 1,462.57 should be left untested through the day, raising the prospects of a 3rd consecutive day’s end at $1,500 if not higher.

BCH/USD 05/05/18 Hourly Chart

Get Into Bitcoin Cash Trading Today

Litecoin finally into the $170s

Litecoin gained 4.47% on Friday, following Thursday’s 6.77% gain, to end the day at $168.2. With 3 consecutive days’ of gains taking Litecoin up 9.76% for the week, faring better than Bitcoin Cash and many of the other majors.

After an initial slide to a morning low $157.19, holding above the day’s first major support level of $153.34 and 23.6% FIB Retracement Level of $153.18 supported a strong rally through the day, with Litecoin breaking through the day’s first major resistance level of $166 to test the day’s second major resistance level at $171.01 with an intraday high $171.28 late in the day, before easing back to sub-$170 levels by the day’s end.

A hold above the day’s first major resistance level was certainly bullish, with Litecoin’s new swing hi $171.29 extending the bullish trend formed back at 6th April’s swing lo $112.1.

At the time of writing, Litecoin was up 1.48% as Friday’s rally spills into the start of the weekend, with Litecoin hitting a new swing hi $173 in the early hours to test the day’s first major resistance level at $173.92 before a slight pullback.

For the day ahead, while sentiment across the broader market will play its hand, holding above $170 through the early part of the day will be key to supporting a bullish move through the weekend, with $180 the next milestone on its path back through to $200 levels.

Failure to hold at $170 levels through the morning could see a reversal later in the day to pull Litecoin back to test support at the day’s first major support level at $159.83, while we will expect a hold at $160 levels in event of reversal through the day, things looking bullish for Litecoin going into the weekend.

News of Reddit looking to include Litecoin has provided support, with the use of Litecoin as an alternative payment system to fiat money yet to have garnered the necessary level of attention it deserves.

LTC/USD 05/05/18 Hourly Chart

Buy & Sell Cryptocurrency Instantly

Ripple Breaks Back into the $0.90s

Ripple’s XRP continued to trail its peers on Friday, gaining just 0.61% to end the day at $0.88948. While the day’s gains were moderate, it was 4 consecutive days of gains that saw Ripple’s XRP rise by 2.66% through the week.

Having struggled to break out from the 23.6% FIB Retracement Level of $0.8477 mid-week, an early slide to a morning low $0.85788 was as bad as is got on Friday. A hold above the day’s first major support level of $0.8441 and 23.6% FIB Retracement Level saw Ripple’s XRP bounce to a day high $0.9322 in the middle part of the day, breaking through the day’s first major resistance level at $0.9048 to test the day’s second major resistance level at $0.9322 before easing back to sub-$0.90 levels by the day’s end.

At the time of writing, Ripple’s XRP was back through to $0.90 levels early on, up 1.33% at the time of writing, with the weekend rally coming early and supported by Friday afternoon’s moves across the cryptomarket majors.

For the day ahead, a move through to $0.92 levels to test the day’s first major resistance level of $0.9285 would consolidate a new range and hold at $0.90 levels by the day’s end, $1.00 the next milestone.

Failure to break through to $0.92 levels could see Ripple’s XRP struggle later in the day, particularly if investor appetite softens, though with Ripple’s XRP lagging the majors through the week, there could be a trend bucking rally that could bring the day’s 2nd major resistance level of $0.9675 into play.

Any pullback through to Friday’s day end $0.88948 will likely bring the day’s first major support level of $0.8441 and 23.6% FIB Retracement Level of $0.8477 into play, which should be enough to prevent any more material losses on the day, in the event of a sell-off.

XRP/USD 05/05/18 Hourly Chart

Buy & Sell Cryptocurrency Instantly

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.

Did you find this article useful?

Advertisement