Cryptocurrency Market Outlook; Ethereum, Ripple, Bitcoin Cash, Litecoin
It’s Not Looking Good, The Market Needs A Catalyst
I just did a quick check of the top-four crytpocurrencies by marketcap that aren’t Bitcoin and I have to tell you, it doesn’t look good. The market appears set to move lower if for no other reason than there isn’t much reason to buy. If there is one thing I hate worse than anything else is an asset that’s moving on an absence of volume. Under these circumstances the prices of Ripple (XRP), Ethereum (ETH), Litecoin (LTC) and Bitcoin Cash (BCH) are unpredictable, there is no telling when some trader somewhere in the world will buy or sell and that could have an exaggerated impact on price action. What I mean is, I wouldn’t be surprised to see a 3%, 5% or 10% move in one or more of these tokens sometime in the near future.
Ethereum, Watch $180 For Your Signal
Ethereum has been in a downtrend since hitting its top in late June. The worlds “most advanced” cryptocurrency is still having trouble getting it’s 2.0 version launched and that is weighing on prices. The coin has made a sharp retreat from a double-top and is now consolidating for what looks like a dip to the $140-$135 level. The key level for traders to watch is $180 where support is currently preventing prices from falling. If the $180 level breaks all those buyers will start becoming sellers and that will fuel a further decline. The indicators are rolling into a bearish signal as I write this, all the coin needs is to follow through on the signal.
XRP, This Chart Is A Short
Of the four charts I viewed today the chart of XRP is the one I want to own the least. In fact, as a trader who normally doesn’t trade bearish, I might short this one because it looks so good. The coin has fallen below a key support level I have been watching for over a year. The price action is forming a little flag pattern that is backed up by the indicators. The indicators are not strongly bearish but they are set up to produce a fairly strong bearish crossover so lower prices are expected. The $0.2362 level is the long-term low and I expect it to be retested. A move below that level would be bearish and take the coin down to new lows.
Litecoin Could Fall Below $70
The Litecoin chart looks equally bearish despite the recent halvening. Traders who’d profited on the way are now taking those profits while they can. The question now is how far will the world’s first and leading Bitcoin offshoot fall before it hits bottom? For now, the coin is consolidating above $70 after having fallen steadily for over two months. The indicators are weak and mixed so there is some support here, if it holds prices may rebound to the short-term EMA, if not a move down to $50 is very possible.
Bitcoin Cash, Uncertainty Is The Only Certainty
I’ll be honest, I don’t really follow BCH that much because I don’t think it matters that much. I mean, we have Bitcoin and Litecoin to choose from already, why do we need another kind of Bitcoin? Regardless, the chart of BCH/USD is one of uncertainty. The price action is wound up in the middle of a wide range with the indicators in support of said range. There is some bearish bias in the indicator but I think support is much stronger than in the other coins I’ve analyzed today.
