See of blood can be seen on the list of the major cryptocurrencies. Today we will analyse three which are loosing the most, around 10% – Bitcoin Cash, Stellar and Litcoin. Actually, the old stock saying tells us to buy, when there is a blood on the streets. Is that a case for the cryptos now? Well, I think that the statement that there is a buy signal here would be too rich, at least for now.
Let us start with the Bitcoin Cash, which has the best trading signal out of all the cryptos right now. BCH is breaking a super important neckline (and a horizontal support in the same time) on the 910 USD. From the technical point of view, that movement is a real catastrophe for the buyers and opens us a way towards new lows, much more below the 400 USD. Obviously, we have to use this opportunity to mention our previous analysis of Bitcoin Cash. You know, to show you that we warned our readers about that some time ago.
Bitcoin Cash was analysed by us on Monday, when the price was still above the neckline. Three days ago, in that report, we wrote:
„BCH is about to test the neckline again. This can be potentially very painful for the owners of this crypto. Once the neckline will be broken, our attention will be shifted towards the areas around the 300 USD. „
In that report from Monday, we also mentioned Litecoin, which was in a super important place. The price was just breaking the lower line of the triangle, which in theory was a trigger to a major sell signal. We wrote, that:
„On Monday, the price is making a first attempt to break the lower line of the triangle. Bearish success here, so a price closing a day below the support, would be a very strong sell signal on this crypto. If succeed, the first potential target should be around the black line (106 USD). With the current overall sentiment and such a strong technical signal, we should get there with ease. „
The price did close below the support and the movement did trigger the sell signal. After this, we got only bearish sessions. Quite impressive I have to admit. 106 USD mentioned by us in the previous report is still on the radar. Our approach do not change, we should get there quite easily. I know that drop in the value of the Litecoin and other cryptos may be painful but in the same time I am happy that with my reports, I am able to help some traders with their decisions. As you can see, vast majority of our analysis are spot on.
Anyway, time for the last altcoin in this article – Stellar Lumens. Last time, we mentioned the XLM on the 20th of March:
„Currently we are having a third bullish day in a row and we are quite close to a major buy signal. For that, we need to see the breakout of the red and orange down trend lines along with the green horizontal support. Price closing for a day above them, will be a strong signal to go long. „
The price did not manage to close above the green area. 0.28 was proven to be a super strong resistance and should be remembered for the future. Orange down trendline is also safe for now. Currently, the price is aiming the lower line of the wedge and the test of the 0.15 seems very probable. We are using a bearish momentum created after the bounce from the 0.28 and the overall negative sentiment towards the cryptos. Sell signal will be denied once the price will break the 0.28, which for now seems less likely to happen.