Bitcoin Cash, Litecoin and Ripple Daily Analysis – 08/04/18
Bob Mason
Updated
Bitcoin Cash Settles after a Choppy Week
Bitcoin Cash rallied 4.83% on Saturday, reversing Friday’s 4.93% slide, to end the day at $655, as investors continued to buy into the dips through what has been a particularly volatile week across the cryptomarket.
Bitcoin Cash enjoyed to a number major moves through the day, the first coming at the start of the day, with Bitcoin Cash moving from its intraday low $607.2 to $634.7, coming up short of the first major resistance level of $636.77, the second coming in the middle part of the day, with Bitcoin Cash hitting an intraday high $655.
The day’s high broke through the first major resistance level of $636.77, which ultimately led to pullback to $640 levels by the close.
While Bitcoin Cash managed to break through the day’s first major resistance level, failing to move through to $700 levels and the 23.6% FIB Retracement Level of $714.3 continues to affirm the extended bearish trend.
At the time of writing, Bitcoin Cash was up 1.69% to $649.9, Bitcoin Cash recovering from an early morning $636.3 low to hit a morning high, consolidating Saturday’s recovery in the early part of the day.
For the day ahead, a move back through the morning’s high would support a run at the day’s first major resistance level of $659.4, while $700 levels may continue to be elusive, the cryptomarkets in desperate need of a weekend rally that doesn’t falter by the end.
Failing to test the day’s first major resistance level could see Bitcoin Cash pullback through to this morning’s low, but with the day’s first major support level sitting at $611.6, some quite dire news would need to hit the wires for a major reversal later in the day.
Litecoin had a less impressive day on Saturday, gaining just 2.71% to partially reverse Friday’s 4.36 slide, ending the day at $116.
Moves through the day were in line with the broader market, much of the gains coming within the first few hours of the day, Litecoin bouncing from an early intraday low $112.68 to $119.08, with a middle of the day jump to an intraday high $119.59 the end of it for the bulls.
The day’s high pushed through the first major resistance level of $118.63, while falling short of $120 levels and the 23.6% FIB Retracement Level of $124.9, the reversal in the 2nd half of the day coming at a key resistance level that has become a signal for investors to pull out and wait for another dip to jump back in.
The good news was that Litecoin managed to avoid major support levels through the day, though the bearish trend continues to remain intact.
At the time of writing, Litecoin was up 0.49% to $116.63, trailing the broader market in the early part of the day.
This morning’s $115 low saw Litecoin move into the red for a 3rd time in just a few hours, with a relatively positive start to the day across the market providing much needed support, in what has been a choppy start to the session. A $117.4 high came within the first hour, falling short of the first major resistance level of $119.5, leaving major support and resistance levels untested early on, the lack of direction likely to be a testy one for investors in the middle part of the day.
For the day ahead, Litecoin will need to make a run at $120 levels and avoid a sell-off at the first major resistance level of $119.5, with a break through the 23.6% FIB Retracement Level of $124.9 likely to be the confidence booster needed.
Failing to move into $120 levels will leave Litecoin in a bearish trend later in the day, investors likely to be wary going into the new week.
The broader market has provided support through the day, but investors may turn elsewhere if Litecoin fails to make a move.
Ripple’s XRP gained 2.63% on Saturday to end the day at $0.48407, partially reversing Friday’s 4.06% fall, failing to touch $0.50 levels for a 3rd consecutive day.
A start of the day bounce from the day’s $0.46936 low to $0.49425 would have certainly provided some hope of a strong weekend rally, with the day’s first major resistance level of $0.4915 being tested early, but as has been the case in recent weeks, key resistance levels have led to pullbacks. Ripple’s XRP broke through $0.4915 on a number of occasions, failing to move through to $0.50 levels on each, the last push in the middle part of the day coming up just shy with the day’s $0.49971 intraday high.
It was south from there, with Ripple’s XRP pulling back to $0.4806 before settling at mid-$0.48 levels.
At the time of writing, Ripple’s XRP was up 0.32% to $0.48616, with moves through the early part of the day leaving major support and resistance levels untested.
An intraday high $0.49245 came up short of the day’s first major resistance level of $0.4994 and more importantly, $0.50 levels, with the 23.6% FIB Retracement Level untested in recent days affirming the bearish trend formed back at 19th March’s swing hi $0.72872.
For the day ahead, Ripple’s XRP will need to break through to $0.50 levels, though managing to hold at key resistance levels may be an issue, as investors continue to hit the sell button, holding Ripple’s XRP and the broader market back from a more solid recovery.
Falling short of $0.50 levels by the middle of the afternoon could see investors turn bearish, a pullback to yesterday’s $0.46936 low to test the day’s first major support level of $0.4691 a likely outcome, with weekend rallies having a tendency to reverse before the start of a new week.
