Bitcoin: After a Strong Push comes a Sharp Pull
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Thai bank Siam Commercial Bank has announced an instant cross-border payment system operating under Ripple's technology. In the last 24 hours has Bitcoin (-4.84%) and the majority of the altcoins are pulling back some of the gains acquired in the previous days. All major currencies had similar drops. The most bearish were EOS (-5.29%), Litecoin(-5.37%), Cardano (5.23%), NEO (-5.08%), and DogeCoin (-7.75%). The star of the day is Lisk, with a 34.2% gain. In the Ethereum token section, the most bearish were LINK (-5.68%), BAT(-5.63%), and SNX(-14%), whereas ZRX(+5.59), ECOREAL(+13.7%) and FSN(+39.6%) were among the best movers.
The market cap of the crypto sector went down by 2.47% and now is $210.24 billion. That figure was made with $38.7 billion of traded volume in the last 24 hours, a 0.95% increase over the previous day. The Bitcoin Dominance is now 68.52%
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Technical Analysis
Bitcoin
Bitcoin has retraced faster than expected. After the price rejection at $8,442, bitcoin has made a large bearish candle that went straight to the $800 level. Now the price is at the highs prior to the last bullish leg and touching the mid-Bollinger line, which still acts as support trendline, whereas MACD has transitioned to bearish. The last two candlesticks were built on tiny volumes; thus, we think the correction is over, and a retest of the last highs can happen in the next few hours.
Ripple
Ripple is still in correction mode. XRP price broke below its mid-Bollinger line and cut the 0.208 short-term low to place the price on the lower side of the Bollinger bands. The MACD continues in its corrective phase. Still, the Bollinger lines point upwards. Therefore, we see this is a retracement of the very sharp bullish movement it made in the previous days. On the chart we can see the price at the 0.62 level, so, if the rest of the sector starts moving upwards, this is a good level to begin the next level up, as well.
Ethereum
Ethereum followed the sharp drop dictated by Bitcoin's price action. ETH monetarily broke the $139.5 support to recover it in the next candlestick. Its MACD still moves downwards, and currently, the price is on the lower side of the Bollinger bands, but the bands still point upwards. Thus, we keep the positive bias of the asset.
Litecoin
Litecoin also had a sharp correction after being rejected at the $48 level. The price went as down as $44, and now is bouncing off, gaining the $45 range. The price is touching the mid-Bollinger line, although the bands are still pointing upwards, and The MACD is still bearish.
We still think the asset has upward potential, but the sharp drop made a case for the creation of a range between $44 and $48.
Author
EagleFX Team
EagleFX
EagleFX Team is an international group of market analysts with skills in fundamental and technical analysis, applying several methods to assess the state and likelihood of price movements on Forex, Commodities, Indices, Metals and
