UK Markets closed

Bitcoin Cash, Litecoin and Ripple Daily Analysis – 01/03/18

Bob Mason

Bitcoin Cash in Recovery

It was another bad day for Bitcoin Cash on Wednesday, falling 2.78% to an end of day $1,197.6, to make it 4 days of losses in 5.

While the early part of the day saw Bitcoin Cash hit an intraday high $1,277.2, sentiment soon turned negative after news hit the wires of the SEC probe into cryptocurrencies and initial coin offerings in the U.S.

How far the SEC intends to go remains unclear but, with investors continuing to be wary of what lies ahead, the news certainly had an impact, with Bitcoin Cash sliding to an intraday low $1,186.5, falling through its first major support level of $1,200, a move that was only going to come on negative news.

At the time of writing, Bitcoin Cash was up 1.83% to $1,219.5, with the cryptocurrencies clawing back some of Wednesday’s losses.

A move through $1,254 would support a run at $1,300 levels, though investors will need to ignore the SEC’s moves in the U.S and what impact it could have on the global ICO market, which may be a tall order.

A fall back through $1,200 in the middle part of the day would certainly test Bitcoin Cash’s first major support level of $1,164, with a bearish trend having formed mid-week.

BCH/USD 01/03/18 Hourly Chart

Get Into Bitcoin Cash Trading Today

Litecoin Holds on to $200

Litecoin slipped 6.06% on Wednesday to end the day at $202.11, managing to avoid a fall to sub-$200 levels, while falling through its first and second major support level so of $211 and $206.

The good news for Litecoin investors was the support at $200, though this will be of little consolation when considering the bullish sentiment towards Litecoin ahead of the roll of LitePay on Monday.

While Wednesday’s declines were seen across the major cryptocurrencies, Litecoin was amongst the worst performers on the day, with appetite also on the decline as investors shift into other cryptos following the hard fork 2 Sundays ago.

Litecoin was up 0.94% to $204.01 at the time of writing, with investor concern over the SEC probe improving, though we will expect volatility to persist that could test Litecoin investor resolve later in the day.

Litecoin’s first major resistance level of $217 looks a little distant for the day, with a bearish trend having kicked in since Sunday morning.

We will expect plenty of support at sub-$200, with Litecoin’s first major support level sitting at $194, though a fall through $194 could see Litecoin make a more rapid move towards sub-$180 levels

LTC/USD 01/03/18 Hourly Chart

Buy & Sell Cryptocurrency Instantly

Ripple Losing Support by the Day

There seems to be little in the way of Ripple and its descent at the moment, with Ripple falling a further 4.69% on Wednesday to end the day at $0.88239.

With an intraday low $0.8706, Ripple slid through its first and major support levels of $0.9014 and $0.8778, all of which came after hitting an intraday high $0.96141 in the early part of the day, breaking through its first major resistance level of $0.9575.

Negative news was the order of the day and as we have seen throughout the year, Ripple has more to lose when the news is bad.

At the time of writing, Ripple was up 1.16% to $0.8907, recouping some of Wednesday’s losses, with Ripple needing to break back through to $0.90 levels to have a chance of testing is resistance levels later in the day.

It’s been a bearish week and, while Ripple looks to steady, investors will continue to be testy, with any pull back to sub-$0.88 likely to see Ripple test its first major support level of $0.84819.

The cryptos are in positive territory for now, but with negative news doing the rounds, we will expect gains to be limited, which may ultimately test support through the day.

XRP/USD 01/03/18 Hourly Chart

Buy & Sell Cryptocurrency Instantly

This article was originally posted on FX Empire

More From FXEMPIRE: