Bitcoin, Ripple, Litecoin Price Meltdown; Are Markets Oversold?
Bitcoin, Ripple, Litecoin, Ethereum News and Analysis
- Cryptocurrency market records heavy losses
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Cryptocurrency Market Sinks – Double Digit Losses Across the Board
The cryptocurrency market has suffered another 24-hours of heavy losses as sellers dominate the market, pushing prices through support levels and back towards multi-weeks lows. In just over two months, the overall market value has fallen from a record $830 billion to a current level of $317 billion and is on course to hit the $279 billion low on February 6.
While all the major crypto currencies still look weak – see below – it should be noted that all of them are currently extremely oversold according to stochastic indicator at the bottom of each chart. This may prompt a small bounce in the tokens before they resume their downward move.
Top Six Cryptocurrencies by Market Value – March 15, 2018
Bitcoin (BTC) Re-Enters Downward Channel
Bitcoin’s outlook remains negative in the short- to medium-term with the token back in the downward channel from the December 17 high print. Fibonacci support at $8523 was broken easily on March 14 leaving BTC vulnerable to further bouts of selling with little in the way of support until the February 6 low of $6000 comes into play. On the upside resistance at $8523 ahead of $9235.
Bitcoin Price Chart Daily Time Frame (November 23, 2017 - march 15, 2018)
Ethereum (ETH) Bounces of February 6 Low But for How Long?
After hitting a high of $1427 two months ago, ETH has fallen steadily all the way down to the February 6 low of $565 before a small re-bound. Nine out of the last eleven candles show lower highs, a negative chart set-up, which leaves another test of $565 on the cards which would open the way to support at $524. Resistance around $717 should prove difficult to break in the short-term.
Ethereum Price Chart Daily Time Frame (October 5, 2017 – March 15, 2018)
Ripple (XRP) and Litecoin (LTC) Eye Further Losses
Ripple continues to fade lower and again is looking at the February 6 low of $0.57 as the first level of support. Break and close below opens the way to the December 22 spike low at $0.42 ahead of $0.20, the start of the rally on December 7.
Ripple Price Chart Daily Time Frame (November 6, 2017 – March 15, 2018)
Litecoin remains in the one-month downtrend and has broken through support at $173. A double low at $106 is protected by Fibonacci support at $118 and may prove difficult to test with a cluster of trade between $138 and $159 providing a modicum of support. On the upside $172 should be within reach before the down channel comes back into play.
Litecoin Price Chart Daily Time Frame (October 5, 2017 – March 15, 2018)
Cryptocurrency Trader Resources – Free Practice Trading Accounts, Guides, Sentiment Indicators and Webinars
If you are interested in trading Bitcoin, Bitcoin Cash or Ethereum 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 have an IG Bitcoin Sentiment Indicator to help you gauge the market and make more informed trading decisions.
What’s your opinion on the cryptocurrency market at the moment? Share your thoughts with us using the comments section at the end of the article or you can contact the author via email at Nicholas.email@example.com or via Twitter @nickcawley1.
--- Written by Nick Cawley, Analyst.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.