Bitcoin Cash, Litecoin and Ripple Daily Analysis – 10/04/18

Bitcoin Cash Back in the Red

A positive start to the week reversed in the middle part of the day, with Bitcoin Cash seeing solid gains wiped out in a 2 hour sell-off that saw a fall from the day’s $683.8 high to $631.8, before further declines later in the day took Bitcoin Cash to an intraday low $622.7.

The mid-day reversal left Bitcoin Cash down 2.36% at $638 by the day’s end, reversing Sunday’s 2.24% gain.

Support levels were tested, with Bitcoin Cash falling through the first major support level of $639.83 and 2^nd support level of $626.27 before buyers returned on the dip, having hit the sell button at the day’s high $683.8 that had broken through the first major resistance level of $663.43 and 2^nd resistance level of $673.47.

The slide was attributed to the U.S tax season, with investors pulling out on the gains to fund tax bills resulting from crypto investments, similar sell-offs seen across the broader market.

At the time of writing, Bitcoin Cash was up just 0.10% to $636.5, in what has been another choppy start to the day, Bitcoin Cash hitting an early low $631.6 before moving through to a morning high $643.

The tight range through the early part of the day left major support and resistance levels untested, with Bitcoin Cash amongst the better performers this morning, most of the majors in the red at the time of writing.

For the day ahead, a move back through the morning’s $643 high would support a run at the day’s first major resistance level of $673.63, though sentiment across the broader market will need to see a marked improvement for Bitcoin Cash to make a move.

We will expect sell-offs to continue at key resistance levels, with the day’s first major support level of $612.54 likely to come into play later in the day, the longer-term bearish trend firmly intact as Bitcoin Cash continues to fall short of the 23.6% FIB Retracement Level of $714.3.

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Litecoin Gives up $120 Again

Litecoin slipped 2.28% on Monday, more than offsetting Sunday’s 1.45% gain, to end the day at $114.99.

A start of the morning rally saw Litecoin break through the day’s first major resistance level of $119.09 and 2^nd resistance level of $120.42, with an intraday high $122.97, before a late morning slide saw Litecoin tumble from $122.15 to 114.09 in just a few hours, to fall through the day’s first major support level of $115.72

Further declines in the afternoon saw Litecoin fall through the day’s 2^nd support level of $113.68, as Litecoin slid to an intraday low $113.01 before support kicked in, with Litecoin managing to move back to $114 levels.

The moves through the day removed any hope of a bullish trend reversal, with the extended bearish trend formed back at 21^st March’s swing hi $175.5 still intact, Litecoin now having failed to test resistance at the 23.6% FIB Retracement Level of $124.9 for 5^th consecutive day.

Monday’s end of day $114.99 also held below the day’s first major support level, affirming the bearish sentiment and an end to the short-term bullish trend formed through the weekend.

At the time of writing, Litecoin was down 1.02% to $113.74, as Monday’s sell-off continues to test investor appetite through the early part of the morning. The morning’s $113.23 low and start of the day $115.39 high avoided testing major support and resistance levels early on, though support levels may well be tested as the day progresses should sentiment not improve.

A move back through to $120 levels would ease some of the negative sentiment, to test the day’s first major resistance level of $120.97 and bring the 23.6% FIB Retracement Level of $124.9 into play, while any failure to move back through $115 levels will likely see downward pressure build, with the day’s first major support level of $111.01 very much in play.

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Ripple back at sub-$0.50 Levels

Things were no better for Ripple’s XRP, which slipped 2.88% on Monday, reversing Sunday’s 2.99% gain, to end the day at $0.48467.

A positive start to the week, the bulls in control following the weekend’s formation of a short-term bullish trend, saw Ripple’s XRP break through the day’s first major resistance level of $0.5067 to come within reach of the 2^nd resistance level of $0.5138 and 23.6% FIB Retracement Level of $0.518 before the market reversal saw Ripple’s XRP slide to $0.47477 in just a couple of hours.

Ripple’s XRP fell through the day’s first major support level of $0.4877 and 2^nd support level of $0.4758 with ease, as investors sold out on yet another reversal that continues to contain a cryptomarket recovery near-term.

Support was on the lighter side through the middle of the day, with Ripple’s XRP falling further to an intraday low $0.4713 before investors moved back in on the dip.

The moves through the day reversed the short-term bullish trend formed through the weekend, with the day’s close at below the first major support level reaffirming the longer-term bearish trend formed in March.

At the time of writing, Ripple’s XRP was down 0.64% to $0.48278, moving in and out of positive territory through the early part of the day. A lack of direction has seen a morning low $0.47746 and morning high $0.49041, avoid testing major support and resistance levels, with Ripple’s XRP having yet again given up $0.50 levels in spite of Monday’s $0.51 high.

A move through the day’s first major resistance level of $0.5081 would restore some confidence, though the possibility of another middle of the day sell-off will likely limit moves through the morning.

Failure to move back through to $0.50 levels would certainly be bearish, though we would expect some upside later in the day, if the broader market holds steady through the next few hours.

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