The markets see red at the start of the week, but with sentiment having shifted, is this just a buying opportunity for those who missed out of last week’s rally or something more sinister. Price action through the day will tell all.
Bitcoin Cash Rounds off a Solid Week but Sees Red Early Today
Bitcoin Cash jumped 6.08% on Sunday to end the week, Monday through Friday, up 19.6% to $781.2.
Moves through the day on Sunday were relatively bullish, following Saturday’s 0.81% fall, with Bitcoin Cash moving through the day’s first major resistance level of $759.8 and 2nd resistance level of $783.2 to hit an intraday high $787 in the middle part of the day.
The morning run saw Bitcoin Cash break clear from the 23.6% FIB Retracement Level of $742.9 from the start of the day’s $736 low, with Bitcoin managing to hold at around the 2nd resistance level by the day’s end.
The news wires were on the quieter side, with Bitcoin’s moves through the weekend contributing to the broader market bullish sentiment at the end of the weekend, a weekend rally managing to avert a late sell-off for once.
At the time of writing, Bitcoin Cash was down 3.88% to $750.7, with a delayed pullback from Sunday’s 2nd resistance level of $783.20 hitting Bitcoin Cash at the start of the morning.
Bitcoin Cash hit a $799 high in the first hour, leading to the reversal through the early morning to a $750.7 low, testing the day’s first major support level of $749.13 early, after a weekend of steering clear of major support levels.
For the day ahead, investors will be hoping for more sizeable declines to jump in, many likely to have missed out on last week’s rally, with investor buying appetite at the 23.6% FIB Retracement Level of $742.9 likely to be key to Bitcoin Cash’s direction through the early part of the week.
Bitcoin Cash could avoid the FIB Retracement Levels for the day, with the day’s first major support level of $749.13, though based on current sentiment, the first major support level may be a little too pricy for investors sitting on the side lines, particularly if the broader market is in the red.
Litecoin Sees Red after a Strong Sunday
Litecoin gained 4.82% on Sunday, following Saturday’s 0.88% rise, to end the week up 12.63% at $132.53.
The gains through the week may not have been the most spectacular, but will be well received, Litecoin tending to be less volatile than some of the crypto majors, a lag frequently seen between the broader market and Litecoin’s moves.
A start of the day rally, mirroring the broader market trend, saw Litecoin move from the day’s low $126.43 to an intraday high $132.77, breaking through the first major resistance level of $129.58 to test the 2nd resistance level of $132.6 before a mid-afternoon pullback to sub-$130 levels.
Positive sentiment across the broader market supported a late in the day recovery to end the day at the 2nd resistance level to continue supporting the bullish trend formed back at 6th April’s $125.3.
At the time of writing, Litecoin was down 4.55% to $126.49, reversing most of Sunday’s gains in yet another dreaded crypto reversal.
A positive start to the morning, driving Litecoin to an intraday high $133.36, ultimately led to a sharp reversal, with Litecoin sliding through the day’s first major support level of $128.38 to an early $126.05 low.
The morning’s reversal has been dramatic enough for Litecoin to pullback through the 23.6% FIB Retracement Level of $128.5 to bring the 38.2% FIB Retracement Level of $125.3 into play and bring into question whether the latest near-term bullish trend can remain intact.
For the day ahead, a move back through to $128 levels would ease some concern over a broad market sell-off that could see Litecoin back down to test sub-$120 support, while a failure to break back through to $128 and stop the rot could see selling pressure build later in the day.
Expectations were for a post rally sell-off, the question now is whether support can kick in to avoid a reversal of the latest bearish trend and much will depend upon the likes of Bitcoin this afternoon.
Ripple Rallies but Fails to Close at $0.70
Ripple’s XRP rallied 8.86% on Sunday, following Saturday’s 0.53% fall, to end the week up 39.4% at $0.69559.
A jump in the late morning saw Ripple’s XRP hit an intraday high $0.70411 to break through the first major resistance level of $0.6694 and 2nd resistance level of $0.6999 before easing back to sub-$0.70 levels through to the day’s end.
The positive from the day was Ripple XRP’s hold at around the 2nd resistance level, with the morning’s move also seeing Ripple’s XRP breaking out from the 23.6% FIB Retracement Level of $0.6475.
With an intraday low $0.6381, the day’s first major support level of $0.6150 was left untested to continue supporting the bullish trend formed back at 6th April’s swing lo $0.45716.
The higher you rise, the harder you fall…
Following the euphoria across the markets last week, Ripple’s XRP was down 5.95% to $0.65213 at the time of writing, with a broad market sell-off seeing Ripple’s XRP as one of the biggest losers through the morning.
Following a start of the day move to a $0.70177 high, falling short of the day’s first major resistance level of $0.7204, Ripple’s XRP joined the rest of the market into a reversal that has seen much of Sunday’s gains wiped out.
Ripple’s XRP slipped through the day’s first major support level of $0.6544 with a morning low $0.6488, bringing the 23.6% FIB Retracement Level of $0.6475 into play early on, with the negative sentiment across the market likely to test buying appetite at current levels.
Last week’s 39.4% gain was significant and investors may well stick to the side lines in search of pullback to the 38.2% FIB Retracement Level of $0.6111 before jumping back in, with the 2nd support level of $0.6133 there to further incentivise.
While the mood is negative, a pullback to sub-$0.60 levels will be unlikely barring negative news hitting the wires, with a move back through to $0.67 levels likely to be considered a green light, the next milestone for Ripple’s XRP being a hold at $0.70 levels.
Failure to move through to $0.67 levels in the middle part of the day may lead to less support at the 38.2% FIB Retracement Level and a more significant pullback, such a move bringing into question the latest bull-run and the more upbeat sentiment towards the broader market.