The market is nursing declines fueled panic after a global leading investment bank, Goldman Sachs shelved on its intentions to establish a crypto desk. The bank says that regulations in the industry are still undefined. Moreover, it has not narrowed down its options when it comes to digital asset offering.
Bitcoin (BTC) led the market in the bloodbath after plunging from $7,300 to $6,300 in less than 24 hours. Other major currencies like, Ethereum and Ripple were caught up in the carnage breaking several lifesaving supports. The widespread declines have wiped off at least $15 billion of the total cryptocurrency market capitalization which is at $202 billion at the time of writing.
Bitcoin Cash (BCH)
Bitcoin Cash recently made a comeback from the lows in August where it broke several barriers to the upside. The crypto retraced above $600 and formed a September high at $656.87 before it began to trim gains. Prior to the declines that kicked off yesterday, Bitcoin buyers were consolidating the gains around $625. There was also a break above the descending trendline that had been limiting gains since the upward movement in the last week of July.
The freefall failed to find support at $600, similarly, the previous major anchor at $500 has given in to selling pressure. BCH/USD is seeking balance above $480 but is currently trading at $498. The trend is still highly bearish making August lows ($470) a possible reach. The bulls must fight for a retracement above $500, besides a support above this level will allow higher movements to the next resistance target at the 23.6% Fib level with the previous drop from $657.74 to a low of $474.35.
Looking at BCH/USD 4-hour chart, there is a possibility for the buyers to find an entry since the stochastic is ranging in the oversold, which means that the bears are getting exhausted.
Initial resistance: 23.6% Fib level
Resistance 2: 100SMA (4-hours)
Resistance 3: 50SMA (4-hours)
Support: $470 (August low)
Dogecoin is still trading inside the triangle resistance discussed yesterday. The crypto is up a subtle 0.60% in the last 24 hours. Dogecoin appears to be handling the current selloff in the market with calmness. There was a slight retracement but the downside has been supported above $0.0045. The 4-hour 50 simple moving average and the bullish trendline stood their ground and prevented any further breakdown.
Dogecoin is dancing with $0.0050 but a break out of the triangle resistance will see it curve another path towards the upper supply zone at $0.0065. The stochastic has maintained above the oversold levels since the retracement from the surge at the beginning of September.
Initial resistance: $0.0055
2nd resistance: Upper supply zone ($0.0065)
Initial support: 50SMA (4-hour)
2nd support: 100SMA ($0.0035)
EOS, on the other hand, declined sharply below $6.0, besides the previous support at $5.8 was too weak to hold. However, the bulls appeared slightly above $4.8 stopping further declines. EOS has been seeking refuge above $5.00 today but there is a slightly bullish trend testing the resistance at $5.2.
The stochastic on the hourly chart is pointing sharply upwards to signal the return of the bulls. There is going to be a significant struggle at $5.40 and the broken support at $5.8. The 50SMA will also stand in the way towards $6.0. EOS must recoil above $6.00 in order to resume the previous trend towards $7.00. Technical signals are positive at the time of writing and the path of least resistance is upwards.
Resistance 1: $5.40
Resistance 2: $5.8
Resistance 3: Hourly 50SMA
Support 1: $5.00
Support 2: $4.80