Bitcoin Cash Tanks
Following a 1.04% gain on Tuesday, things became particularly bleak for cryptocurrency investors on Wednesday, with Bitcoin Cash tanking 10.4% to $942.8 by the day’s end.
Support levels were more than tested as Bitcoin Cash fell through the day’s first major support level of $1,000 in the early afternoon, with the sell-off continuing through to the close, few buyers jumping in at any level, as the market responded to a flurry of negative news reports hitting the crypto wires through the day.
News of Google changing its policy on financial services, announcing a ban on adds for cryptocurrencies, crypto exchanges, wallets, initial coin offerings and anything else related to the crypto market, was the first blow of the day.
The second blow came from the cryptocurrency session in Congress that certainly did no favours for Bitcoin Cash and the rest, a number of members of Congress having some quite damming things to say about the market, which was in stark contrast to expectations that the session would be treated as an educational session.
Bitcoin Cash hit an intraday low $910.7 late in the day, with only the day’s 3rd support level untested by the close, with some early morning optimism that led to Bitcoin Cash hitting an intraday high $1,073.1 evaporating after falling well short of the day’s first major resistance level of $1,110.9.
Things have not gotten any better this morning, with Bitcoin Cash down 7.44% to $873.8 at the time of writing. The early morning’s intraday low $869.31 fell through the day’s first major support level of $877.97 and continues to sit below, as sentiment towards the cryptomarket weakened further following Wednesday’s slide.
While the news was negative through the day, U.S regulatory oversight is unlikely to cripple the market and Google’s ban is just another step in the sequence that may impact coin offerings, but not so much the major cryptocurrencies. Some support will likely kick in and a move back through to $900 levels would certainly change the picture for the rest of the week.
Litecoin at $151
Litecoin joined Bitcoin Cash and the rest of the cryptocurrencies in sharp decline on Wednesday, continuing the decline that kicked off last weekend, ending the day down 9.7% to $160.68.
Wednesday’s intraday low $157.5 fell through the day’s first major support level of $170.71, with the day’s 2nd support level of $165.66 providing only a temporary cushion from the market free fall as bad news was followed by bad through the day.
The only comfort for Litecoin investors would have been a recovery to $160 levels by the day’s end and Litecoin managing to avoid testing the day’s 3rd support level of $154.96 that could have led to more significant losses in the day.
Litecoin has felt more pain this morning, falling 5.99% to $151.06 at the time of writing, with the only good news of the morning being support at the morning’s $150 low, as Litecoin fell through the day’s first major support level of $152.82.
Holding at $150 levels will be key for Litecoin through the day, with any pull back to this morning’s low likely to see Litecoin test the day’s 2nd support level of $144.96.
Investors will be considering how much further Litecoin can tumble in the wake of Wednesday’s session in Congress and Google’s change in policy. While, we can expect some support at current levels, it’s going to boil down to the news wires and sentiment towards Congress and U.S regulatory oversight, both of which may have been taken too adversely on Wednesday. $160 would be Litecoin’s first target of the day.
Ripple’s XRP slumped 11.6% on Wednesday, seeing the largest decline amongst the trio, as investors ran for cover off the back of the negative news that hit the wires through the 2nd half of the day.
The day’s intraday low $0.65307 slid through all three of the day’s support levels, with an intraday high $0.7997 coming in at the start of the day, following which it was downhill all the way.
If the market was hoping for a rebound this morning, Ripple’s XRP was certainly not the place to look, with Ripple’s XRP down 6.24% to $0.6417 at the time of writing.
With this morning’s intraday low $0.6171 having already tested the day’s first major support level of $0.62528, the only good news will be that support kicked in and sub-$0.60 support levels remained untested in the early hours.
The day ahead will certainly be a trying one for crypto investors, with any further negative news likely to pull Ripple’s XRP down to the day’s 2nd support level of $0.56585.
It’s a brave investor that is willing to jump in at current prices, when considering the negative sentiment, but a momentum driven rebound is not completely off the cards, though it would need Ripple’s XRP make a move towards $0.65 levels before the middle part of the day. We won’t expect the day’s major resistance levels to be tested today however.
This article was originally posted on FX Empire