Bitcoin Cash in Recovery Mode
Bitcoin Cash wasn’t alone in having a choppy day on Wednesday, falling to a low $1,343 before recovering to a $1,736 by the end of the day, a gain of 1.06%.
Bitcoin and Bitcoin Gold also managed to make minor gains through the day on Wednesday, restoring some confidence in the markets.
While the threat of the South Korean government shutting down the cryptocurrency exchanges continues to weigh on investor sentiment, a number of the cryptocurrencies appear to have stabilized this morning, with Bitcoin Cash up 2.91% to $1,792 at the time if writing. Bitcoin Gold has fared better in the early part of the day, up 5.39% to $195.49, while Bitcoin hovers around the $11,000 market, up 0.89% to $11,290.45.
When considering the fact that Bitcoin Cash has fallen more than 50% from its all-time high $4104.3, the recent slump has provided those that missed the December rally with a chance to get on the cryptocurrency bandwagon, though this time around it’s going to be a far bumpier ride, with close to $200bn of investor money having walked out of the door this week alone.
The market panic may have abated over the possible impact of the South Korean government shutting down the cryptocurrency exchanges, with investors expected to find ways to circumvent any ban.
Of greater concern for the markets will be a global task force, but such an eventuality is likely to be someway off, if it’s even feasible for governments to coordinate.
For the day ahead, Bitcoin Cash will need to break through to $2,000 levels to further restore confidence and bring investors back to the table, with the recent losses not being the first time that Bitcoin Cash and the rest have tanked.
Litecoin Struggles On
While the Bitcoin Clan and Ripple begin to dust themselves off from this week’s sell-off, Litecoin continues to struggle for direction, with investors looking elsewhere for buying opportunities.
At the time of writing, Litecoin was down 1.64% to $185.90, with Litecoin among the cryptocurrencies that failed to end the day in positive territory on Wednesday
If December is anything to go by, Litecoin could be stuck in its current ranges for some time, with other cryptocurrencies likely to find their feet far sooner.
For the day ahead, Litecoin will need to move through to $190 levels to have a chance of breaking back through to $200, with today’s high $198 looking to be out of reach at the time of writing, with the crypto likely to face plenty of resistance through the afternoon.
Ripple Makes a Splash
What a difference a day makes.
At the time of writing, Ripple is up 8.43% to 1.42255, leading the pack on its road back to health.
There’s a long way to go, but as is the case with the Bitcoin clan, the acceptance of both blockchain technologies by the mainstream has provided strong support as the markets recover from this week’s sell-off.
Not too dissimilar to the dot.com bubble, the cryptocurrencies that are most likely to perform are those that have a relevance in the real world and are not just a dream of something greater. Tangibility is key for now and Ripple is certainly tangible.
Having recovered to $1.4 levels, a move back through to $1.5 levels hit earlier in the day will be needed to fuel the rally and avoid investors locking in gains for the day.
While there will likely be plenty of support at sub-$1.4 levels, a fall back down towards $1.35 could see Ripple give up gains on the day and ease back to $1.2 levels by the close.
The markets will need to be wary of any regulatory chatter, though investors seem to be confidence that the virtual world will be able to circumvent the real world.
This article was originally posted on FX Empire