Markets are mixed this morning, but a sell-off has yet to materialize that could lead to another rally later in the day should support levels remain untested.
Bitcoin Cash Consolidates
Bitcoin Cash surged 10.2% on Thursday, adding to the 2.86% rise on Wednesday, to end the day at $736, the first $700 level close since 30th March.
Sideways moves through the middle of the week, following Monday’s late sell-off had brought about expectations of a move, with volatility having abated and Wednesday’s late rally and early Thursday reversal having investors ready for a bigger move later in the day.
A late morning intraday high $741.4 smashed through the day’s major resistance levels with relative ease, with Bitcoin Cash’s move through the 23.6% FIB Retracement Level of $714.3 and hold above by the close supporting a short-term bullish trend, formed back at 6th April’s swing lo $600.1.
We had talked about Bitcoin Cash having bottomed out last Friday and this week’s moves continue to confirm the starts of a reversal to the longer-term bearish trend, with Bitcoin Cash needing to hold at $700 to consolidate and make a run at $800 levels to affirm the start of a longer-term bull run.
At the time of writing, Bitcoin Cash was up 0.33% to $737.8 in what’s been a relatively choppy start to the day as investors look to avoid getting caught out in a post-rally sell-off.
The good news for the bulls is that the moves have failed to pull Bitcoin Cash to sub-$700 levels, an early $718.5 low holding above the day’s first major support level of $680.6. Key resistance levels were also left untested through the early part of the day, an early $747 high falling short of the day’s first major resistance level of $766.4.
For the day ahead, key for a consolidation of Thursday’s gains will be a hold above the 23.6% FIB Retracement Level of $708.05, which would support the short-term bullish trend formed at 6th April’s swing lo $600.1.
A move through the day’s 1st major resistance level would support a run at $800, which would provide further evidence of a reversal to the longer-term bearish trend.
Failure for Bitcoin Cash to test key resistance levels in the middle of the day could test investor resolve, with any pullback through the 23.6% FIB Retracement Level likely to bring sub-700 support levels into play later in the day.
We can expect some pullback, with the investors likely to have been overzealous on Thursday, though for a reversal, the news wires will need to have some influence.
Litecoin Rallies but Holding on May be a Challenge
Litecoin jumped 9.83% on Thursday, following Wednesday’s 3.63% gain, to end the day at $129.53, the highest close since 4th April’s $134.01.
While the first half of the week saw Litecoin move sideways, a late Sunday rally reversal on Monday, along with Wednesday’s late rally and early Thursday reversal suggested an imminent move. Litecoin saw a double bounce on the day, moving through to $128.11 in the early afternoon, before hitting an intraday high $131 late in the day.
A morning $114.58 low tested the day’s first major support level of $114.43, while Litecoin made its way through the day’s first major resistance level of $120.94 and 2nd resistance level of $123.59 in the early afternoon, before testing the 3rd resistance level of $130.1 late in the day, leading to Litecoin’s pullback to sub-$130 levels by the day’s end.
The good news for the bulls was Litecoin’s move through the 23.6% FIB Retracement Level of $124.9 though, not being able to make a run at the 38.2% FIB Retracement Level of $134.57 will have some doubting a reversal of the extended bearish trend that has plagued Litecoin investors in recent weeks.
This week’s direction has formed a short-term bullish trend however, with much now depending on direction through Friday and the weekend on whether the longer-term bearish trend has reversed, following the 6th April bottoming out across the market.
At the time of writing, Litecoin was down 3.27% to $125.29, with a morning low $124 holding above the day’s first major support level of $119.08, while falling through the 23.6% FIB Retracement Level of $126.54 to test buyer appetite at the 38.2% FIB Retracement Level of $123.78.
For the day ahead, Litecoin will need to hold above the 38.2% FIB Retracement Level to avoid a pullback to test sub-$120 support levels and see the short term bullish trend begin to reverse, with buying appetite at the 38.2% FIB Retracement Level dependent upon broader market sentiment.
A move back through to $130 level and the start of the day high $130.48 would affirm the formation of a bullish trend, reversing the longer-term bearish trend, though sentiment across the broader market will need to improve for the day’s first major resistance level of $135.5 to be tested.
Ripple Does a $0.50 Level Flyby to $0.60 Levels
Ripple’s XRP had one of the more spectacular runs of the day on Thursday, surging 19.24% off the back of Wednesday’s 10.77% rally, to end the day at $0.64202.
A start of the day $0.50141 low to test sub-$0.50 support levels was all that Ripple investors had to worry about, with the hold at $0.50 levels in the early part of the morning supporting a 2nd consecutive rally, with Ripple’s XRP hitting a late morning high $0.59488 to break through the day’s first major resistance level of $0.5699 before a late in the day rally saw Ripple’s XRP break out to test the day’s 3rdresistance level of $0.6695, with an intraday high $0.66362.
A late pullback to the day’s close was not enough for Ripple’s XRP to give up $0.60 levels, last reached back on 26th March.
Ripple XRP’s break through the 62% FIB Retracement Level of $0.6234 in the late afternoon and hold, with broader market sentiment holding back selling pressure on the day, supported the formation of a near-term bullish trend. Whether a bull run has been in the making will ultimately be down to today’s moves, any pullback to $0.55 levels likely to see hopes of a longer-term bearish trend reversal ease.
At the time of writing, Ripple’s XRP was down 2.28% to $0.62624, with Ripple’s XRP finding support at the 23.6% FIB Retracement Level of $0.6149 after sliding to an early morning $0.60752 low.
The hold at $0.60 levels and avoiding a test of the day’s first major support level of $0.5411 will likely be a key event from the morning, with any shift in sentiment across the broader markets later in the day likely to provide further gains and a run at the day’s first major resistance level of $0.7033.
A move through to $0.70 levels would further reinforce a bullish trend formation from 6th April’s swing lo, reversing the longer-term bullish trend formed back on 19th March.
The morning’s pullback should be considered reasonable following the 2 solid days of gains, though moves through the rest of the day will be influenced by the broader market.