Bitcoin, Ripple, Ether, Litecoin – News and Talking Points
– Cryptocurrency losses rack-up over the week.
– Traders should be wary going into the weekend as the current sideways trade may quickly change to sharp moves in either direction.
To see how traders are currently positioned in cryptocurrencies and what it means for the market looking ahead, check out the IG Client Sentiment page.
The cryptocurrency market has lost around $70 billion in market capitalization over the week – at the time of writing – with losses spread across the board. A warning from the IMF over cryptocurrencies and a notice from Google that they will be stopping ICO/cryptocurrency advertising, sent the market lower, taking out support levels along the way. A current period of consolidation is in play but traders should be wary that weekend trade can easily move the market in either direction, and should be ready for any eventuality.
Bitcoin (BTC) Down Channel is Still in Play
Currently trading around $8350, BTC is still just above the downward channel started from the December 17 high and below the 78.6% Fibonacci retracement level at $8523. If BTC falls back into the down channel and closes in there for a couple of days, the $6000 February 6 low comes into play ahead of the full retracement of the November 12 – December 17 move at $5406 heaves into view. On the upside, $8523 before $9300, the bottom of Zone One.
Bitcoin (BTC) Price Chart in US Dollars(October 10, 2017 – March 16, 2018)
Ripple (XRP) Has Had A Bad Week
Another headline cryptocurrency that has suffered heavy losses over the last week, and further falls may be close at hand. On the downside $0.52 and $0.42 are notable recent lows that may provide some support before a further sharp drop and full retracement back to $0.20. XRP currently changes hands at $0.69 with upside targets at $0.83, $0.86 and $0.93 all lying ahead. A sharp fall from current levels should not be discounted.
Ripple Price Chart in US Dollars (December 3, 2017 – March 16, 2018)
Ethereum (ETH) Potentially Over-Sold in the Short-Term
The second largest cryptocurrency recently hit a low around $564, just above the February 6 low that other coins are targeting, after having trader at a $1428 peak two months ago. The bounce of this low may see ETH push back to the 61.8% retracement level, and a cluster of minor highs/lows, at $718. On the downside the aforementioned $564 level should be watched carefully with $524 the first level of support below.
Ethereum Price Chart in US Dollars (October 8, 2017 – March 16, 2018)
Litecoin (LTC) Down Channel Needs Respecting
The recent LTC slide found support around the February 14 low at $158 and has bounced back but without a great deal of conviction. Resistance at $173 is within sight, just ahead of the down channel at $179, with a cluster of recent lows also in view. On the downside a double low at $107 should provide strong support if $118 is broken.
Litecoin Price Chart in US Dollars (October 8, 2017 – March 16, 2018)
Essential Cryptocurrency Trader Resources – Free Practice Trading Accounts, Guides, Sentiment Indicators and Webinars
If you are interested in trading Bitcoin, Ripple, Ether or Litecoin we can offer you a wide range of free resources to help you. We have an Introduction to Bitcoin Trading Guide along with a Free Practice Account. In addition we run a Weekly Bitcoin Webinar and have an IG Bitcoin Sentiment Indicator to help you gauge the market and make more informed trading decisions.
What’s your view of the cryptocurrency market – oversold or overbought? You can leave your comments in the section below or you can contact the author by email at firstname.lastname@example.org or via Twitter @nickcawley1.
— Written by Nick Cawley, Analyst.