Bitcoin failed to hold on to $13,700 over the past few hours and slid to $13,400. A deeper correction could be in play as analysts expect a move to $12.7-$12.9k. Altcoin markets took a hit on Bitcoin’s move downward. Bitcoin Cash slipped beneath a level of support. EOS and Dogecoin also plunged and their markets were in bear dominated.
Bitcoin Cash [BCH]
Bitcoin Cash closed beneath the rectangle pattern it was trading within (yellow) and promptly dropped by another 7.4% to trade at $238.6 at press time.
The RSI was in deeply oversold territory on the 4h charts. This indicated a minor pullback upward for BCH before another move downward.
The level at $245 may be retested before BCH moved downward on a bearish wave.
In other news, Huobi announced that they will support the BCH hard fork if it occurred.
The 100 SMA (pink) was moving downward in September, but through October, the downtrend appeared to be arrested and EOS even made some gains.
Yet it was all undone in the face of uncertainty in the market and a dropping Bitcoin. EOS fell like a rock past levels of support and was quite a way beneath its 50 SMA (yellow) and the 100 period moving average.
It could post further losses in the coming days, with $2.1 and $2.26 as the next levels of support. The coin ascended past the $2.1 level previously at the end of March, and the asset’s proximity to that level once more showed the weakness of the bulls in recent months.
On Balance Volume indicator registered a series of lower highs throughout the past month. There were periods of increasing buying volume within this time period, highlighted by the OBV setting higher lows (white and orange).
But the bears forced wave after wave of selling on the asset and prevented recovery. The next level of support for DOGE is at $0.0024.
Even if DOGE closed above the $0.0025 level, it wouldn’t indicate a reversal in trend. It would likely be a bounce and could offer short sellers an opportunity in the next few trading sessions.
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