The downward trend in cryptocurrencies seems to be accelerating. Many of the cryptocurrencies have broken support levels as well.
With most of the supports broken, it remains to be seen where the cryptocurrencies are headed from here on.
USD / Bitcoin (BTC):
The 100 SMA is below the longer-term 200 SMA on the 1-hour time frame, which suggests that the path of least resistance is to the downside. In other words, support is more likely to break than hold.
This could also mean that resistance is more likely to keep gains in check. The 200 SMA lines up with the top of the triangle to add to its strength as a ceiling.
However, it’s also worth noting that the gap between the moving averages is narrowing to signal a slowdown in selling momentum. Stochastic is turning lower to show that sellers still have the upper hand, while RSI looks ready to move south as well.
Yesterday, there was a downside move, but it was contained by the $677 level in ETH price against the US Dollar. The price was seen struggling, but buyers succeeded in preventing any major breakdown towards $620. A low was formed at $677 recently and the price is currently correcting higher. It has moved above the 23.6% Fib retracement level of the last decline from the $739 high to $677 low.
However, there are many barriers on the upside for buyers around $708-710. The 100 hourly simple moving average is positioned near $710. Moreover, the 50% Fib retracement level of the last decline from the $739 high to $677 low is at $708. Therefore, a break above the $708-710 is needed for buyers to gain upside momentum in the near term. Above $710, the next major resistance is near $735 and $737. The stated $735 level acted as a resistance on many occasions, and it may continue to prevent gains.
On the downside, there is a connecting bullish trend line forming with current support at $685 on the hourly chart of ETH/USD. The pair remains supported on the downside around $685. However, it must rise above $710 to avoid a downside reaction in the near term.
There was no upside action above $0.8000 in Ripple price against the US Dollar. The price is currently trading in a range and is preparing for the next move above $0.8000. The recent low was formed at $0.7630 form where the price started rising slowly. It is currently trading near the 38.2% Fib retracement level of the last drop from the $0.8300 high to $0.7630 swing low.
However, there are many barriers on the upside around the $0.8000 and $0.8200 levels. First, the 50% Fib retracement level of the last drop from the $0.8300 high to $0.7630 swing low is near $0.8000. Moreover, the stated $0.8000 is just around the 100 hourly simple moving average. Therefore, the $0.8000 level is a major resistance. A break above the stated $0.8000 resistance could clear the way for more gains. More importantly, yesterday’s highlighted monster contracting triangle pattern with current support near $0.7700 is intact on the hourly chart of the XRP/USD pair.
It seems like the pair may continue to trade in a range above $0.7700 for a few sessions. Once there is a break above $0.8000 and $0.8200, there could an extended upside move towards $0.8500.
Bitcoin Cash (BCH):
Bitcoin Cash gained just 1.04% on Tuesday, following Monday’s 8.13% fall, to end the day at $1,060.9.
It was quite a choppy day, with Bitcoin Cash hitting the day’s intraday high $1,100 early to then reverse through the middle part of the day to an intraday low $989.1, testing the day’s first major support level of $986. While the day’s high may have fallen short of $1,128, the first major resistance level, Bitcoin Cash faced plenty of selling pressure as it touched the day’s 62% FIB Retracement Level of $1,100.93, which led to the pullback through to the day’s low that sat well below the day’s 23.6% FIB Retracement Level of $1,043.86.
The good news for investors was that there was no major sell-off ahead of today’s session in Congress on cryptocurrencies and initial coin offerings, with the general consensus in the cryptomarkets being that the session will be less of an authoritarian one and more of an educational session.
Following a choppy Tuesday, the early part of the day has been mixed, with Bitcoin Cash down 1.39% to $1,036.4 at the time of writing.
An early move through the day’s 38.2% FIB Retracement Level of $1,053.62 to an early morning high $1,073.1 saw Bitcoin Cash pullback to a day low $1,030.8 before a partial recovery.
With support and resistance levels untested in the early part of the day, a pullback through the day’s 23.6% FIB Retracement Level could see Bitcoin Cash test the day’s first major support level at $1,000. Bitcoin Cash has only avoided sub-$1,000 levels once in the last 6-days and that was on Monday, in the wake of Sunday’s 14% rally.
While a bearish trend has formed since Sunday’s swing hi $1,158, a move through to $1,000 levels from Tuesday’s swing Lo $989.1 could find support if Bitcoin Cash manages to hold above the day’s 23.6% FIB Retracement Level and move through the day’s 38.2% FIB Retracement Level of $1,053.62 in the early part of the day. With the first major resistance level sitting at $1,110.9, sentiment across the markets will need to be upbeat as Bitcoin Cash crosses the 38.2% FIB Retracement Level to support a run at the day’s 62% FIB Retracement Level of $10,093.5.
The way ahead will likely be similar to the way it started, choppy with some attempts to break back through to $1,100, though how the day ends will be in the hands of Congress and the new wires.
There was a nice support base forming above the $0.1800 level ADA price against the US Dollar. The price traded higher and broke the $0.2000 and $0.2100 resistance levels. It even traded above $0.2300 and formed a high near $0.2324. Later, it corrected lower and moved below the 23.6% Fib retracement level of the last wave from the $0.1893 low to $0.2324 high.
However, the downside move was protected by the $0.2100 support and the 100 hourly simple moving average. Moreover, the 50% Fib retracement level of the last wave from the $0.1893 low to $0.2324 high acted as a support. At the moment, the price is trading higher back towards $0.2324 high. It seems like it could break the $0.2350 resistance and trade towards $0.2500. Above $0.2500, the price may even trade towards the $0.2800 level.
On the downside, there is a key connecting bullish trend line forming with support at $0.2150 on the hourly chart of the ADA/USD pair. The pair remains well above the $0.2100 level and the 100 hourly SMA. If it fails to remain above the $0.2100 level, there is a risk of a downside push back towards $0.1800.
Generally, trading this coin has been tricky considering LTC prices have been ranging over the last couple of days. Well, even after yesterday’s bearish candlestick, a clear stochastics buy signal is visible at the secondary chart.
Now, here is my view and trade plan for LTC.
First, we shall use March 9 high lows at $190 and $155 as our immediate resistance and support since prices have been moving along $180. It is not that reliable and $180 looks like a median price. If there is a break below $155 today, then we shall cancel our bullish forecast.
On the contrary, if buyers follow through and momentum increase leading to a break above $190, then buyers can think of going long. Otherwise, I know it gets boring but we are still neutral on this pair.
IOTA is trending lower against the dollar after previously breaking below a symmetrical triangle consolidation pattern. Price is forming another short-term consolidation pattern at the moment and it looks like a bearish flag signal.
IOTUSD was rejected on its test of the descending channel resistance visible on the 4-hour time frame and might have its sights set on the next support levels. At the moment, price is testing the swing low around 1.3420 and the 38.2% extension.
Stronger selling pressure could take it down to the 50% extension around 1.1153 or the 61.8% extension at 0.8828. A test of the channel support could also hit the 76.4% extension at 0.5952 or the full extension at 0.1304.
The 100 SMA is below the longer-term 200 SMA to signal that the path of least resistance is to the downside. These moving averages are slightly above the channel resistance to add to its strength as a ceiling in the event of another test.
Stochastic is pulling up to show that buyers are ready to regain control of IOTA price action. RSI also has some room to climb, so bullish momentum might still return. However once both oscillators hit overbought levels and turn lower, selling pressure could pick up again.
The DASH markets fell during trading on Tuesday as well, reaching down towards the $480 level. The area does offer a bit of support though, so I think that given enough time we will probably reach towards the $510 level if we can get buyers. However, if we do break down below the $470 level, the market will almost certainly go down to the $450 level as it is the next large, round, psychologically significant figure. I expect that we will see a lot of choppiness, but just as the other alt coins, the DASH markets will need to see Bitcoin rally.
Monero markets have initially tried to rally during the day but then rolled over to reach down towards the $250 level. This is an area that extends down to the $240 level, and therefore I think it can be difficult to break down from here. However, if we were to break down below the $240 level, the market could break down significantly. On the other hand, we could bounce from here and go looking towards $280, which is more likely the case. If Bitcoin rallies, that should help Monero.