Bloody Week: Is the Crypto Market Recovering Anytime Soon?

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The bears continue to dominate the markets following the aftermath of the Bitcoin Cash hard fork last month. The hard fork had a negative ripple effect on the rest of the cryptocurrency markets as prices nose-dived beyond initial support levels.

Over the last 24 hours, most pairs turned red on price analysis charts, a phenomenon is seen throughout the week. Most altcoins took a heavy loss today, recording a double-digit percentage loss.

Bitcoin (BTC/USD)

Bitcoin lost by 7.87% since yesterday. It began the day trading at $3771 against the current exchange rate of $3474 against the dollar. The downward rally has seen Bitcoin test the $4000 support level and breaches it. Resistance still holds at the $4000 mark but support has come down to around $3400 as indicated in the chart.

On 3 hour charts, the BTC/USD pair hit a high of 3920 over the last 24 hours and a low of $3368.Both moving averages, marked A and B, are headed downwards, indicating the strong bearish momentum that has engulfed the markets. Also, the 21 day EMA (A) is above the 7-day moving average (B), further signaling the bearish momentum may last a while.

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Point D shows a contracting triangular pattern formed by the downward spiral that is also an indicator of a bearish trend.

Investor sentiments have turned negative as a result of the bearish outlook. The Relative Strength Index (RSI)-marked C has today dipped into the ‘oversold’ area and is at 25, signaling that selling pressure has overpowered the buying pressure.

Bitcoin Cash (BCH/USD)

Bitcoin Cash continues to take a beating in the post-fork period. Yesterday, it was trading at $128 before embarking on a downward spiral to the current exchange rate of $108 against the dollar. This represents a 15% loss for BCH.

Marked C and B are the 21 and the 7-day moving averages respectively. The 21 days EMA has been above the 7 days EMA over the last 24 hours indicating the heavy magnitude of the loss being experienced by BCH. Support has also dropped to below the $100 mark and is at $94 while resistance stands at $130. The highest point reached was $127 and $94 on the lower side.

A shows the RSI miles below the ‘oversold’ region. It is currently at 9, showing that there has been a negative attitude by investors towards BCH since the fork.


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The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.