Led by the ripple (XRP), the bitcoin and altcoin markets declined on Thursday, after remaining on the bull's side for much of the week.
The cryptocurrency market as a whole has seen their uptrend stuck to a halt. Other top performers during the previous rally, including stellar (XLM), cash bitcoin (BCH) and EOS, have undergone a strong recovery action. However, they managed to keep some of their gains while not being able to sustain their prevailing bullish momentum.
The cryptographic correction coincided with the withdrawal session of the US shares. The S & P 500 and Nasdaq also rebounded from their rallies when the dollar regained strength before the Fed meeting. While a direct correlation between the dollar and the encrypted markets is difficult to establish, the fact that it is the new that the old market are correct in sync with each other, however, raises questions.
With the stronger Altcoins holding on to their medium-term supports, their permission-enabled pairs can also form bulls flags. It means that a downward correction may have been caused by the daily traders coming out of their long positions, suggesting that an upward trend should resume after identifying a temporary support – a rebound level.
For example, XRP became one of the best performing cryptographic assets after a 26.94% increase from $ 0.449 to $ 0.570. Subsequently, the currency canceled about 14% from its gains, now trading at $ 0.507, which is also above the rising channel support, represented in orange bearish. The provisional mood should start to favor bears in the event of a failed successful action below the aforementioned level of support.
There have also been reports that XRP mobilized after news of its integration into a global SWIFT payment standard, and corrected after the agency rejected the rumors altogether. Any such correlation can not be established at the time of writing this document.
Bitcoin Upside Capped
The bitcoin of the cryptocurrency locomotive also found its rally limited by its 100-period moving average – the third time. The average is represented in blue sky in the daily chart above, which defines the inability of the bitcoin to regain the bulls near these resistance levels. However, the pullback is not as severe, but it can certainly extend to the support of the $ 6,203 range. A breakout, on the other hand, brings the next resistance pressure to $ 6,600, followed by $ 6,750 and $ 7,000 in the medium term.
High volume on the BCH / USD market
Unlike XRP and bitcoin, bitcoin cash is witnessing an increase in volume at the time of its recall action. It should look natural before an upcoming fork event that would split the BCH blockchain into two separate networks. Operators are likely to keep BCH coins in hopes of receiving tokens transmitted by air that may or may not have value in the future.
As of now, the bitcoin money is trying to attempt a break action above the last mid-term downtrend resistance. It would allow the pair to test $ 663 as a potential upside target while observing $ 788 to confirm a longer uptrend. On the downside, an extended pullback would bring value to the 100-period moving average (blue sky), a support level, while setting $ 407 as the downtrend primary target.
Stellar Strongest in the top 10
Stellar is comparatively stronger than the rest of the best coins, now tending sideways following the hint of a strong recovery action. The currency against the dollar almost nullified the losses it faced during the downward correction. Now he is suggesting a side action while keeping his eyes on a potential sale action towards. If this happens, the rising short-term trend line that coincides with the 100-period SMA could provide decent support for a potential rebound. A further interruption and the same pressure would fall on medium-term support later.
Disclaimer: The author currently holds bitcoins, bitcoin and stellar liquidity for short and long term investments.
Shutterstock foreground image. TradingView Charts.
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