Bitcoin Cash Hot under the Collar
Tuesday’s moves in the cryptomarkets were certainly not one to remember, with Bitcoin Cash falling to an intraday low $1,511.6 late in the day before managing to recover to $1720.8 by the close, a 27.9% slump for the day.
Things have not been much better this morning, with Bitcoin Cash down 3.30% to $1,656.4 at the time of writing sitting just above its intraday low $1,591.9.
It’s certainly not looking good for the cryptos at the moment and for investors that had joined the party in the New Year, the cryptomarket hangover has kicked in. Negative sentiment towards government and regulator chatter has hit the markets and as the chatter builds and the markets begin to see signs of a coordinated global regulatory task force to oversee the cryptoexchanges and cryptocurrencies, things will go from bad to worse.
For now its chatter, but with the South Korean government persisting with the talk of possibly closing the cryptocurrency exchanges, others could well follow.
It’s certainly unwise to look at going into the market in these conditions, with uncertainty seeing volatility on the rise. More chatter could see heavier losses through the day. It will ultimately depend on whether the view is that this is a dip or a correction. If it’s the latter, then holding off is the wisest choice, if it’s a dip then getting in at any price around current levels is an attractive proposition.
A bullish move towards $1,750 could see a recovery build towards $2,000 levels, with any fall to sub-$1,550 likely to test support levels down through to sub-$1,400 on the day.
Litecoin Struggles Continue
Litecoin may have had a better day than Bitcoin Cash on Tuesday, falling by just 18% to $199.87 by the close, but with an intraday low $146.6, it certainly spells trouble for the Litecoin bulls.
The bad news may have been focused on Bitcoin of late, but the reality remains that Litecoin is at the mercy of its peers and if the exchanges are under threat, then Litecoin is also in the line of fire.
At the time of writing, Litecoin is down 5.65% to $180.34, sitting just above its intraday low $175.00. For Litecoin to avert a more serious sell-off through the day towards the $150 mark, a move back towards $190 levels will be needed to settle the jitters,
Whatever happens, the cryptomarkets are in for a choppy day.
Ripple Falls Further Behind
What a difference a week makes.
Ripple slumped 30% on Tuesday, falling from $1.65 levels to $1.15 levels, with an intraday low $0.84987 also there to spook investors, with Ripple having held above $1.00 levels since the late December rally that culminated in an all-time high $3.30, hit on 4th January.
It’s been downhill ever since and, while the cryptoworld is trying to shake off Big Brother, the decision by Coinbase not to include Ripple on its exchange had started the Ripple reverse.
At the time of writing, Ripple is down 2.75% to $1.11656, with ripple managing to recover from an intraday low $0.96931.
The markets are no longer interested in what blockchain technology is on offer, with the declines broad based and certainly not selective.
Ripple will need to make a move back towards $1.20 levels to avoid a fall back to sub-$1.00 levels for a 2nd consecutive day, which would prove to be a little more challenging to recover from.
This article was originally posted on FX Empire