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Bitcoin Cash, Litecoin and Ripple Daily Analysis – 27/03/18

By:
Bob Mason
Published: Mar 27, 2018, 06:14 UTC

It's another day in the red for the cryptomarket, with all of the majors failing to shake off a bearish trend formed through the early part of last week. Concerns over regulations and attempts by governments to limit the expansion of the market by pressuring the likes of Facebook, Google and Apple adding to the downside.

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Bitcoin Cash Back in the Red

Bitcoin Cash saw its bearish trend resume at the start of the week, falling 6.11% on Monday, to end the day at $911.6.

Following a 0.02% gain on Saturday, hopes of another weekend rally died fast as Bitcoin Cash’s early intraday high $975.4 fell well short of the day’s first major resistance level of $987.93 and the day’s 23.6% FIB Retracement Level of $986.44 to test sellers through the day.

News of Twitter’s confirmation of a ban on cryptocurrency ads did the damage, though the bearish trend that was formed at last Wednesday’s $1,084 swing high continued to remain intact ahead of the announcement.

An intraday low $881 slid through the day’s major support levels, with the 3rd support level of the day sitting at $914.77. Only a late rally that saw Bitcoin Cash jump from $883.2 to $924.3 in a single hour managed to save the day for what could have been far worse.

The doom and gloom of yesterday continued through the early part of this morning, with Bitcoin Cash down 3.38% to $877.2 at the time of writing.

Early attempts to move through the day’s 23.6% FIB Retracement Level of $928.91, with an intraday high $926.8 failed, leding to a sharp pullback, continuing to support the bearish trend formed last week.

A morning low $873.4 managed to avoid testing the day’s first major support level of $869.93, though sentiment will need to see a significant improvement for Bitcoin Cash to avoid testing support levels later in the day.

For the day ahead, a move back through to $900 would support a run at the day’s 23.6% FIB Retracement Level and first major resistance level of $964.33, though we would expect selling pressure to prevent a run at the day’s 38.2% FIB Retracement Level of $958.55 and first major resistance level, barring a broad based cryptomarket recovery from this morning’s losses.

BCH/USD 27/03/18 Hourly Chart

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Litecoin Back at $140 Levels

Litecoin has certainly lost its vim of late, with a 7.4% tumble on Monday to end the day at $148.25, particularly bearish and the first time that Litecoin has ended the day at $140 level since the mid-February tumble.

It was quite a fall on Monday, with a range bound start to the day, which saw Litecoin touch a day high $160.62, ultimately contributing to Litecoin’s continued bearish trend, with Twitter’s news doing the rest.

Through the middle part of the day, Litecoin slid from $159.54 to a news swing lo $142, a long way off last Wednesday’s swing hi $175.5. As has been the case on other occasions, when the news wires are hit with negative impact news, support levels softened, leading to a far steeper decline, Litecoin falling through all three support levels on Monday before a partial recovery.

The bad news for the Litecoin bulls was that Litecoin failed to break back through the day’s 3rd major support level of $149.54 by the day’s end.

Litecoin continued to be in the control of the bears this morning, falling a further 4.49% to $141.59 at the time of writing.

It’s been largely downhill all the way through the early hours, with an intraday low $138.16 falling through the day’s first major support level of $140 early, supporting the current bearish trend from last week.

For the day ahead, the good news for the Litecoin bulls is that support kicked in at sub-$140 levels, while the bad news remains the negative sentiment that continues to grip the market.

A move through the morning’s $149.48 high would support another run at the day’s 23.6% FIB Retracement Level of $149.91, with investor sentiment needing to see a sharp improvement across the market for a move through the day’s 38.2% FIB Retracement Level of $154.8 to bring the day’s first major resistance level of $158.63 into play.

LTC/USD 27/03/18 Hourly Chart

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The Ripple Tank

Ripple’s XRP may have managed to buck the trend on Saturday, with a more meaningful gain than its peers, but Monday was very much in line with the rest of the crypto majors. Ripple’s XRP ending the day down 7.25% to $0.58859.

It was the first time since the early February correction that Ripple’s XRP closed at sub-$0.60 levels, with the only good news for Ripple investors being a hold above the day’s 3rd support level of $0.5663.

The day’s high $0.63906 fell short of the first major resistance level of $0.6524, while sellers lined up at the day’s 23.6% FIB Retracement Level of $0.6385 that ultimately saw a late rally fizzle out.

Failure to break through and hold above the day’s 23.6% FIB Retracement Level of $0.6385 affirmed the bearish trend formed at the previous Monday’s swing high $0.72872.

For the day ahead, the negative sentiment continues to pin back Ripple’s XRP, with an early run at $0.60 levels, falling short, leading to a reversal that left Ripple’s XRP down 3.32% at $0.5702 at the time of writing.

Ripple’s XRP tested the day’s first major support level of $0.5608, with a morning $0.5517 low, leading to a move back to $0.57 levels, with Ripple’s XRP looking to make a move this morning, the day’s losses certainly less material than the vast majority of the crypto majors.

A move back through to the morning’s high $0.598 would support a run at $0.60 levels and the day’s first major resistance level of $0.6277 and 23.6% FIB Retracement Level of 0.6217, though with plenty of uncertainty continuing to grip the cryptomarket, investors will likely continue to lock in profits at key resistance levels to avoid being exposed to a reversal.

XRP/USD 27/03/18 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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