Dark clouds covered the crypto market again. Initial optimism, which started on the 17th of March is totally gone. The bullish correction was mild and technically not relevant but managed to light up the fire in the hearts of most of the cryptomaniacs all over the world.
How is the father doing?
Bitcoin created a beautiful flag (orange). We told You about this formation in our previous analysis:
„Technically, that movement was just a correction. If we ignore the swings from Saturday and Sunday (rectangle), we will receive a perfect bearish flag (second in a row), which precisely shows us that the recent price action was rather a dead cat bounce than the legitimate reversal. The target does not change – 6000 USD is still on the radar. „
Now we are much smarter cause we can see that, after the weekend, the price really broke the lower line of the flag and as expected, is aiming south. The resistance on the 9200 USD (black) was respected as in a textbook and we should definitely remember this value for the future. The aim stays the same (6000 USD) but first, the price needs to break the lows from the 17th of March, which can be quite challenging.
Next one is Litecoin mentioned by us on the 21th of March. The price was nicely climbing higher after the bounce from the lower line of the triangle. In that report, we wrote:
„Litecoin is definitely an instrument which should stay on your radar. The price is slowly getting to the end of the symmetric triangle pattern and we are very close for a final decision – should we climb higher or fall lower. „
Seems like the final decision is being discussed right now. 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 younger and still smaller brother of Bitcoin – the Bitcoin Cash, will be our third guest in this report. Last time, BCH was mentioned together with the Litecoin, so on the 21th of March. The situation was interesting because we were bouncing from the long-term neckline, which could have brought us a strong bullish implications. We warned from the premature optimism though:
“The price is very close to the breakout of the mid-term down trendline (black), which can be a super strong buy signal. Do not get too optimistic though. We still have to watch out for the neckline. We are not high enough to forget about this level. „
Unfortunately for the buyers, the demand for the BCH was too low to break the black line mentioned above. 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. That would actually mean a huge decrease in value. Prices around the 300 USD would definitely attract some new buyers… and the cycle would start again.