Yesterday ended with a late day sell-off led by a particularly aggressive move lower by ETH. I questioned whether this was a blip on the radar or maybe a suggestion that the broader rally was due a correction. As I begin the Thursday, ETH has broken yesterday’s lows and touched $160.40 before recovering to $165. BTC has fared better, briefly dropping under $5,000 before returning to $5,070. Otherwise, the majority of the top 10 coins are down between 7% and 10%. As I’ve mentioned a few times, the market is vulnerable to these larger corrections but still remain well and truly in the broader uptrend. After the initial moves the rest of the day is a muted affair. BTC continues to hover above $5,000 but ETH struggles to get back above yesterday’s low of $167. The market looks heavy but is holding for now. On the news front, a CNBC interview with IMF Head Christine Lagarde caught my eye. The very fact that she is addressing crypto currencies is interesting. “I think the role of the disruptors and anything that is using distributed ledger technology, whether you call it crypto, assets, currencies, or whatever ... that is clearly shaking the system,” she said. “We don’t want innovation that would shake the system so much that we would lose the stability that is needed,” she added. In other words, regulation will play an important role in the success of the digital asset space.
Yesterday I attempted to show why ETH had fallen as it did late in the day. Today that set up has brought further losses and dragged much of the market with it. BTC however is still holding over $5,000. But others have suffered and LTC is one of them. Looking at the chart below we can see our 4th ranked coin was in a well-defined channel until breaking out to the top as this broader market rally began last week. Having backed off around 20% from it’s high, we now look for meaningful support. The first short term level around $76 was briefly broken today on a short lived dip to $75.25. Stronger support may come in the form of the top of that extended channel, which would currently come in around $71.00 and then the previous high and real break up level from last week near $65.50. Keep an eye on these levels over the next 48 hours. $100 remains the psychological barrier to the top.
Thursday’s biggest winner and loser.