Bitcoin Cash, Litecoin and Ripple Daily Analysis – 11/01/18

Bitcoin Cash on the Slide

It’s a bad day for the Bitcoin Clan, with Bitcoin Cash down 12.74% to $2,494.9 at the time of writing, with Bitcoin and Bitcoin Gold having as bad a day with losses of 0.90% and 11.78% respectively.

Bitcoin Cash had seen a start of the day high of $2,950.7 as it looked to make a move back to $3,000 levels only to be thwarted by news hitting the wires of the South Korean government acting on its threats against the cryptocurrency exchanges, with Bithumb and Coinone having been raided by tax officials and the police.

To make matters worse, there was also news that the South Korean Justice Department was preparing to roll out legislation that would ultimately end in the closing down of South Korea’s cryptocurrency exchanges.

With regulators already investigating South Korean banks and their KYC and anti-money laundering policies, the banks linked to the cryptomarkets, it’s getting hot under the collar for the exchanges and the government is looking to just throw cold water of the country’s insatiable appetite for the cryptos.

The news wires will be the key driver through the day, though we will expect some of the market panic to subside, with Bitcoin Cash likely to find plenty of support at sub-$2,400 levels.

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Litecoin doing better than most

At the time of writing, Litecoin was down 6.6% to $232.4, with this morning’s decline far less material than its peers, with most of the cryptos seeing double digit declines in the early part of the day.

Regulatory risk has been the key driver at the turn of the year and the threats from the South Korean government have become something more real, as the country’s largest exchanges get raided.

The declines are yet to reflect an outright ban on cryptocurrency trading however, with most of December’s gains that saw Litecoin move from sub-$100 levels to today’s ranges largely attributed to a surge in South Korean appetite for the cryptocurrencies.

Litecoin will need to hold on to $230 levels to avoid the risk of falling back to sub-$200 levels, which haven’t been seen since a pre-Christmas sell-off.

It’s looking bearish, the only question being how much Litecoin is going to cough up before the close.

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Ripple Down and Almost Out

Things couldn’t get much worse for the Ripple team, with Ripple down another whopping 15.45% to $1.64863 at the time of writing.

Having grabbed the headlines for all the right reasons in late December, it’s for all the wrong reasons this week and Ripple may well become a cautionary tale to those looking to ride the cryptocurrency wave.

It’s been a double whammy for Ripple. Not only is there downward pressure on the markets, following news of the South Korean government looking to shut out cryptocurrency trading, but there’s also the Coinbase announcement that has crippled Ripple going into the New Year.

Perhaps there had been hopes of Coinbase including Ripple over the near-term, but with the recent slide and fall from grace, there will be less pressure on its inclusion, at least until the South Korean dust settles.

Ripple will need to hold on to $1.6 levels to avoid falling through to sub-$1.4 levels, with the only cryptocurrency seemingly able to handle the current pressure being Ethereum that is down just 0.56% to $1,240 at the time of writing.

One thing is for certain, Ripple is not the cryptocurrency safe haven and pressure will likely remain through the day, with any recovery from today’s tumble hinged on the new wires.

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