Bitcoin Cash Slammed
If the markets were looking for a relief rally this week, disbelief may be the appropriate word for investors, as the cryptocurrency market slide continued through Thursday and into the early hours of this morning.
Bitcoin Cash slumped 18.84% to a closing price of $1,213 on Thursday and things have deteriorated this morning, with a further 10.72% slide to $1,140.3 and the time of writing.
Negative sentiment towards the market continues to hammer the cryptocurrencies, with news of KODAK’s decision to postpone its Initial Coin Offering hitting the wires another blow for the market that was about to see a mainstream entity cross over to the virtual world of ICOs and cryptocurrencies.
While the reason for the postponement is for KODAK to assess the status of its potential investors, the recent market correction will have contributed to the delay, with investors and KODAK likely to be wary of launching in the current climate.
Next week’s testimonies on the cryptomarket to the Senate is also in the minds of the investor, with investors likely to begin questioning current holdings, particularly with Bitcoin Cash now at early December levels, which was prior to the record breaking rally that saw Bitcoin Cash hit a record high $4,104.3 before the January to date slump across the market.
A move towards $1,000 would certainly be a test for investor resolve, particularly when considering the degree of uncertainty that lies ahead from a regulatory standpoint. With both South Korea and the U.S now scrutinizing the market, it’s a tough time ahead for the cryptomarkets that had been the beneficiary of a lack of oversight.
For the day ahead, today’s intraday high $1,280.4 is unlikely to be seen for some time, while we will expect there to be reasonable support at current levels, with Bitcoin Cash’s first major support level sitting at $1,111.67, though there’s going to be plenty of vol going into the weekend.
Can the markets see another weekend rally to shave off some of the week’s 35.39% losses? With Tuesday’s testimony to come, any upside will likely be short lived at best.
Litecoin Down and Ready for More
The Litecoin slide continues, with Litecoin’s market cap now down to $6.96bn, a far cry from Litecoin’s all-time high $20.38bn hit in late December.
While the week’s slide has been broad based, Litecoin has in fact done slightly better than some of its peers, with Thursday’s 17.27% slide making it a 33.65% fall for the current week.
At the time of writing, Litecoin was down 8.26% to $128.99, recovering from an intraday low $121, with investors now facing the distinct possibility that Litecoin could fall back to sub-$100 levels for the first time since the 1st week of December.
We will expect Litecoin to find some strong support at current levels, with the first major support being at $122.10, with resistance levels some way off and unlikely to be tested through the day.
Litecoin founder Charlie Lee certainly saved himself a few pennies when he sold his Litcoins in December, when the Litecoin hovered between $200 and $215 over the days he offloaded the coins.
Things just got from bad to worse for Ripple.
Thursday’s 21.94% fall took Ripple down 38.44% for the week and this morning’s 12.82% fall to $0.8342 has not only seen prices go back to before the December rally to an all-time high $3.53, but also seen its market cap fall to just $31.03bn at the time of writing.
Having hit an intraday low $0.778 and recovered, Ripple will likely re-test $0.80 support levels, as sentiment continues to unravel, with things looking particularly bearish for Ripple going into the weekend.
Speculative investors have shown just how influential the actual blockchain technology is to the pricing of the respective cryptocurrencies, with the Ripple team’s success in pushing out Ripple’s blockchain tech providing little support relative to its peers that have had far less success.