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Bitcoin Cash, Litecoin and Ripple Daily Analysis – 21/04/18

By:
Bob Mason
Published: Apr 21, 2018, 05:41 UTC

Following a Friday rally, the markets are in consolidation in the early part of the weekend, though the upbeat sentiment across the markets should continue to support the current bull run.

USD/CAD daily chart, April 09, 2018

Bitcoin Cash $1,000

Following a slow start to the day, Bitcoin Cash rounded off the week with a 16.3% rally, following Thursday’s 7.9% gain, to end the day at $1,153.1.

It was the highest close since the first week of March, with Bitcoin Cash managing to recover from a morning $941 low as the cryptomarket kicked into gear in the late morning, with the rally breaking through the day’s first major resistance level of $1,007.93 and 2nd resistance level of $1,049.87 before facing selling pressure at the 3rd resistance level of $1,157.47.

The slight pull-back at the day’s end will be of little concern, investors enjoying another day of support levels being left untested, with Bitcoin Cash having surged a whopping 43.8% Monday through Friday.

While the scheduled hard fork may have provided support in recent days, a material shift in market sentiment has been the key driver, with similar gains being seen elsewhere, the only laggard being Bitcoin.

At the time of writing, Bitcoin Cash was up 0.4% to $1,129, to lead the way amongst the major cryptocurrencies, with the rest of the pack in the red through the early part of the morning.

It’s been a choppy start, which was to be expected following Friday’s rally, though an early $1,061.4 low steered clear of the day’s first major support level of $991.7 and 23.6% FIB Retracement Level of $1,022.6.

The morning’s moves come from increased appetite from the May hard fork, while a morning $1,143.5 high in the last hour also failed to test the day’s first major resistance level of $1,203.8, with the broader market needing to make a move for Bitcoin Cash to break through to $1,200 levels for the first time since 8th March.

Failure to move through to $1,200 levels will unlikely see a material pullback through the day, the bull run intact following Friday’s swing hi $1,153.1, though a continued slide across the broader markets could see Bitcoin Cash test buyer appetite at the 23.6% FIB Retracement Level later in the day.

BCH/USD 21/04/18 Hourly Chart

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Litecoin consolidates $150

Litecoin continued on its road to recovery, gaining 6.46% off the back of Thursday’s 4.47% rise, to end the day at $155.8, a 17.6% rise for the week Monday through Friday.

With the failings of Litepay behind it, the bull run formed at 6th April’s swing lo 112.1 remains strongly in place, the bull run supported by Litecoin’s inclusion on a number of exchanges and the end of the U.S 17th April tax deadline.

An intraday low $143.31 in the early part of the day held above the first major support level of $141.19 and 23.6% FIB Retracement Level of $139.3, with a choppy start to the day ultimately ending with Litecoin rallying to a day high $156.46 late in the day.

While major support levels were untested, Litecoin broke through the day’s first major resistance level of $150.05 by the middle of the day, before breaking through the 2nd resistance level of $153.33 late on, with Litecoin holding above the 2nd resistance level by the day’s end.

At the time of writing, Litecoin was down 1.62% to $153.19, as investors lock in profits following the week’s gains and Litecoin consolidates ahead of what investors will hope to be another weekend rally.

A start of the day intraday high $157.1 came off the back of Friday’s afternoon rally, which went into reverse within the first hour of this morning, Litecoin hitting a morning low $151.3 within the first hour before recovering to current levels. The morning low steered clear of the day’s first major support level of $147.25 and 23.6% FIB Retracement Level of $146, as the dips through the current bull rally become shallower.

For the day ahead, a move back through to $155 would signal a reversal to this morning’s consolidation and support a run at the day’s first major resistance level of $160.4 and signal the prospects of a 5th consecutive day of gains, with broader market sentiment capable of seeing Litecoin make a run at the 2nd resistance level of $165.01.

Failure to make a run at the day’s major resistance level could see Litecoin pullback through to sub-$150 levels and test the day’s first major support level, though with general sentiment bullish, Litecoin would find plenty of support towards the end of the day, sub-$150 likely to be a buy signal for the market.

LTC/USD 21/04/18 Hourly Chart

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Ripple Soars

Ripple’s XRP rallied 18.53% on Friday, following Thursday’s 19.15% bounce, to end the day at $0.92554.

3 consecutive days of gains led Ripple’s XRP to a 34% rally for the week, Monday through Friday, with $0.90 levels hit for the first time since 8th March.

Ripple’s XRP bucked the trend from the beginning of the morning on Friday, with many of the crypto majors in consolidation mode early on, the day’s $0.77456 low coming within the first hour of the day, from which a rally continued through to the day’s end, a day high $0.95634 breaking through the major resistance levels of the day before easing back to below the 3rd resistance level of $0.9532 by the day’s end.

The bull run formed at 6th April’s swing lo $0.45716 remains firmly intact, the passing of the U.S tax deadline, talk of Soros and other family money entering the market and an easing in government and regulator chatter supporting the latest bull run.

At the time of writing, Ripple’s XRP was down 2.6% to $0.90205 as investors looked to lock in sizeable profits from the rallies of the past two days.

Ripple’s XRP slipped to a $0.88034 low in the early part of the morning, before bouncing back, with investors quick to jump in at sub-$0.90 levels, the day’s first major support level of $0.8146 and 23.6% FIB Retracement Level of $0.8385 untested in the early part of the day.

There’s been no move to speak of, but with sentiment towards Ripple’s cross-border wire transfer platform on a high and the markets expecting the smart money to begin a more selective investment process, the prospects for Ripple’s XRP are certainly on the positive side.

A move back through to the start of the day’s $0.93238 would signal the beginnings of another rally, which would bring the day’s first major resistance level of $0.994 and $1.00 levels into play, such a move likely to draw in more investors on any pullback from resistance levels as Ripple’s XRP looks to recover the year’s losses.

Failure to make a run at the day’s resistance levels could see Ripple’s XRP stay in consolidation mode through much of the day, with any pullbacks to sub-$0.90 levels likely to find plenty of support, leaving the day’s first major support level of $0.8146 and the 23.6% FIB Retracement Level of $0.8385 untested, barring a material sell off in the markets.

While Bitcoin has been the barometer for the cryptomarkets over the last 12-months, Bitcoin Cash will likely be a more appropriate indicator of investor sentiment ahead of the hard fork next month.

XRP/USD 21/04/18 Hourly Chart

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About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.

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