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Bitcoin Cash – ABC – Hits a Bear Trap
Bitcoin Cash ABC tumbled by 16.69% on Thursday, following on from a 0.57% fall on Wednesday, to end the day at $132.91.
A bullish start to the day saw Bitcoin Cash ABC rise to a morning high $163.25, breaking through the first major resistance level at $159.98 and second major resistance level at $161.97 to come up against the 38.2% FIB of $163 before being subjected to a crypto meltdown.
The sell-off saw Bitcoin Cash ABC slide through the day’s major support levels to a late morning low $130.71 before finding support to move back through to $140 levels.
The chances of a rebound were lost in the late afternoon, with Bitcoin Cash ABC sliding to an intraday low $130.00 to hold just above the 62% FIB of $129, the sell-off leading to a near-term bearish trend formed back at mid-December’s swing lo $73.55.
At the time of writing, Bitcoin Cash ABC was down 0.23% to $132.60, with Bitcoin Cash ABC recovering from a start of a day morning low $131.11 to hit a morning high $132.64, the day’s major support and resistance levels left untested early on.
For the day ahead, a move through to $140 levels by the early afternoon would be needed to support a partial recovery of Thursday’s loss, though for Bitcoin Cash ABC to break out from $140 levels to bring the first major resistance level at $154.11 into play, the rebound is going to need to be seen across the broader market.
Failure to take a run at $140 levels could see Bitcoin Cash ABC take another hit later in the day, a pullback through to sub-$130 levels likely to get investors edgy, bringing $125 levels into play before any recovery.
Litecoin Sees the Deep Red
Litecoin slumped by 13.76% on Thursday, following on from a 1.41% fall on Wednesday, to end the day at $33.27.
Tracking the broader market, an early intraday high $39.25 was the only bullish move of the day, Litecoin coming up short of the first major resistance level at $39.63 before hitting reverse.
The sell-off saw Litecoin slide through the day’s major support levels to an intraday low $31.91 before finding support in the final hours.
At the time of writing, Litecoin was up 0.45% to $33.42, with Litecoin rising from a start of a day morning low $32.76 to a morning high $33.71 before easing back, the day’s major support and resistance levels left untested early on.
For the day ahead, a move through the morning high to $34 levels by the early afternoon would support a move through to $35 levels, while we would expect Litecoin to come up against strong resistance on any run at the day’s first major resistance level at $37.71 to limit to upside to $36 levels on the day.