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Bitcoin Cash, Litecoin and Ripple Daily Analysis – 17/03/18

By:
Bob Mason
Published: Mar 17, 2018, 04:52 UTC

Investors are in search of the weekend rally early on, with the news wires likely to be on the quieter side being the positive for the market, following last week's declines.

cryptos

Bitcoin Cash Rally Falters

Friday was yet another mixed day for Bitcoin Cash, while marking the first day of gains since Wednesday’s 1.04% and some way off Monday’s 14.3% rally.

Sentiment through the early part of the day was negative, with Bitcoin Cash falling to an intraday low $892.4 in the early morning, Bitcoin Cash’s failure to make a move through the 38.2% FIB Retracement Level of $979.15 on Thursday ultimately leading to a late Thursday, early Friday sell-off.

With the news wires on the quieter side through the early part of the day, sentiment shifted through the middle of the day, with Bitcoin Cash rallying to an intraday high $1,067, to test the day’s 1st and 2nd major resistance levels, to break through the day’ 62% FIB Retracement Level of $1,047.45.

There were plenty of sellers at the top end, with news of 12 SEC investigations into initial coin offering campaigns, giving Bitcoin Cash holders a good reason to sell out.

At the time of writing, Bitcoin Cash was down 0.12% to $967.3, in what has been a relatively range bound start to the day. Bitcoin Cash’s intraday high $996.9 failed to break through to $1,000 levels and test the day’s first major resistance level of $1,060.73, with the day’s low $957.2 managing to avoid support levels.

Investors will be looking for the weekend rally to jump in, with sub-$1,000 levels certainly an attractive entry price when looking at moves through recent weekends.

For the day ahead, a move back through the day’s 38.2% FIB Retracement Level of $979.15 would support a run at $1,000 levels, to test the day’s first major resistance level.

Failure to break through would likely see Bitcoin Cash pullback to this morning’s low $957.2 and test sub-$900 support levels should sentiment across the cryptomarket not improve through the morning.

A lack of news should ultimately provide support, though how quickly investors jump back in following last week’s moves remains to be seen. Bitcoin Cash was down 14.8% from Monday’s open through to Friday’s end of day $970.3.

BCH/USD 17/03/18 Hourly Chart

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Litecoin on the Slide

Litecoin managed to close out Friday with a 2nd consecutive gain, though the 0.37% rise was certainly not enough to reverse losses from earlier in the week, leaving Litecoin down 12.5% from Monday’s open to Friday’s end of day $164.8.

The damage was done mid-week, with 3 consecutive days of losses that culminated in a 9.7% slide on Wednesday, which came off the back of Congress’s views on initial coin offerings and cryptocurrencies.

An intraday high $172 tested the day’s first major resistance level of $171.51, with Litecoin having passed through the day’s 23.6% and 38.2% FIB Retracement Levels in the latter part of the day relatively unhindered, having tested the 38.2% FIB Retracement Level of $166.99 earlier in the day.

As investors responded to updates from the SEC, which coincided with the day’s highs, there was nowhere left to go for Litecoin but south, ending the day at sub-$170 levels.

Friday’s late sell-off continued through the start of this morning. Litecoin was down 1.57% to $162.72, with the majority of the major cryptocurrencies in the red at the time of writing. The bearish trend that formed from last Saturday’s swing hi $194.47 remaining in place.

For the day ahead, Litecoin will need to move back through an early intraday high $165.48 and move through the 38.2% FIB Retracement Level of $166.99 to support a run at $170 levels and test the day’s first manor resistance level of $171.68.

We will expect key support and resistance levels to play a part today, with the news wires on the quieter side, as investors look to recoup some of last week’s losses.

A failure to break back through to $165 this morning may ultimately test investor patience, with a pullback through the day’s 23.6% FIB Retracement Level of $160.5 likely to test the day’s first major support level of $158.24.

Weekend rallies have persisted and there may well be another one this weekend, but this morning has shown little signs of a rally, leaving investors to look ahead to the middle part of the day.

LTC/USD 17/03/2018 Hourly Chart

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Ripple Back in the Hands of the Bears

Ripple’s XRP ended the day down 0.76% on Friday, to make it 5 consecutive days in the red. Ripple’s XRP failed to test major resistance levels through the day, an intraday high $0.71323 falling short of the day’s first major resistance level of $0.7306.

Ripple XRP’s failure to hold above the day’s 38.2% FIB Retracement Level of $0.7065, coupled with the news of the SEC investigations ultimately weighed, leading to a pullback to $0.6786 by the close, to leave XRP down 16.7% from Monday’s open to the end of the day on Friday.

The only good news of the day was Ripple’s XRP avoiding the day’s first major support level of $0.6311, but that was of little consolation when considering the losses through the week.

At the time of writing, Ripple’s XRP was down 1.04% to $0.6695, with a move back to the day’s 23.6% FIB Retracement Level of $0.6755 key to support a run at $0.70 levels through the middle part of the day.

With the bearish trend intact, failure to test the day’s first major resistance level of $0.7102 could lead to another reversal and test the day’s first major support level of $0.6501, Ripple’s XRP now having closed out at sub-$0.70 for the last 3-days.

XRP/USD 17/03/18 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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