- Cryptocurrency market ends the week with heavy losses.
- Litecoin set-up looks the most positive of the top 4 digital tokens.
To see how traders are currently positioned in cryptocurrencies and what it means for the market looking ahead, check out the IG Client Sentimentpage.
Bitcoin (BTC) Price Chart Highlights Heavy Losses
Five bearish lower high/lower low candles in a row this week emphasize the current weak state of cryptocurrency heavyweight Bitcoin. Not only has BTC broken through support offered by zone one and two, it has also re-entered the downtrend from the December 17 high of just $20,000. And to add to the bearish outlook, the 78.6% Fibonacci retracement level at $8523 was broken, although BTC currently trades back above this level. Support currently around $7,600 – the bottom of the downtrend – ahead of $6,000, the February 6 low print. On the upside, BTC will have a cluster of resistance levels between $9,300 and $11,600 to break and close above before the chart begins to look positive.
Bitcoin (BTC) Price Chart in US Dollars(September 29, 2017 – March 9, 2018)
Ripple (XRP) Price Chart Breaks Lower
Ripple price action has been dominated in the past month around a zone between $0.83 and $0.93 an area that covers the Fibonacci retracement level (78.6%) at $0.86. The supportive nature of this area has now been broken and failure to trade back above $0.93 could see XRP fall further. The February 6 low around $0.58 may offer some support before a complete retracement back to the start of the rally at $0.20 is back on the cards. For the chart to turn positive $0.93 must be broken decisively.
Ripple (XRP) Price Chart in US Dollars (November 13, 2017 - March 9, 2018)
Ethereum (ETH) Price Chart Battles with Fibonacci Levels
The sharp sell-off in the second-largest cryptocurrency by market capitalization was predicated by a move under the lower upward trend line and the subsequent fall through Fibonacci retracement at $853. The market is now battling between retracement levels at $717 (61.8%) and $524 (78.6%) although today’s candle is fighting to turn positive. Note that both Bitcoin and Ripple have both traded through 78.6% retracement levels started in November although Ripples move was more extended than either Bitcoins or Ethereums.
Ethereum Price Chart in US Dollars (October 16, 2017 – March 9, 2018)
Litecoin (LTC) Price Chart Shows Full Spike Retracement
The only chart with a notably positive day candle, Litecoin is showing resilience after completely retracing and then rebounding off the February 14 bullish candle low around $158. LTC also currently trades above 61.8% retracement at $172, indicating a move back to $210 is possible. Support at $172 and $158 should provide some downside protection with 50% retracement and a cluster of trades around $210 the short-term upside target.
Litecoin Price Chart in US Dollars (October 16, 2017 – March 2, 2018)
Essential Cryptocurrency Trader Resources – Free Practice Trading Accounts, Guides, Sentiment Indicators and Webinars
If you are interested in trading Bitcoin, Ripple, Ether or Litecoin 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 run a Weekly Bitcoin Webinar and have an IG Bitcoin Sentiment Indicator to help you gauge the market and make more informed trading decisions.
What’s your view of the cryptocurrency market – oversold or overbought? You can leave your comments in the section below or you can contact the author by email at email@example.com or via Twitter @nickcawley1.
--- Written by Nick Cawley, Analyst.