Bitcoin Returns to Critical Support, XRP and Bitcoin Cash Pulled Lower
Overall market trades sideways as Bitcoin continues consolidating.
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The cryptocurrency market is back under pressure with Bitcoin and a number of other altcoins, including XRP and Bitcoin Cash, losing bullish momentum and trading in the red.
Bitcoin quickly reversed from a high of $8,780 to a low of $8,620. The move appears to be technically driven as buyers failed to break above the Nov. 12 trading high.
Excluding Bitcoin, the total market capitalization is currently $81.3 billion, down from $83.4 billion from last week, a loss of 2.5%.
Going forward, a loss of the $8,500 level, where Bitcoin’s 50-day moving average is located, could provoke a wave of technical selling and push the cryptocurrency towards $8,000.
Key technical resistance is found at the psychological $9,000 level and Bitcoin’s 200-day moving average, which is currently located at $9,300. Trader sentiment towards Bitcoin is its most bearish in months according to data from ActivTrades, a leading retail broker in the U.K. 69% of traders are bearish towards Bitcoin. Retail Sentiment is often used as a contrarian indicator.
Ripple has been downtrending since falling under the $0.30 support level last week. XRP price action has also been bearish, with the cryptocurrency falling under $0.27.
A break under the $0.25 support level would be extremely bearish for XRP at this stage as technical support below $0.25 is limited until the current yearly trading low of around $0.21. Key resistance for XRP is found at the Nov. 10 trading high of $0.29 and the psychological $0.30 level.
BCH has come under pressure this morning and is currently trading around the $278 support level. The cryptocurrency trades 5% lower from its weekly price peak. A bearish head and shoulders pattern is visible on the four-hour time frame, with the pattern holding a $30 downside projection. The neckline of the pattern is located at the $270 level.
BCH buyers need to move the cryptocurrency above the $305 level to invalidate the bearish pattern. Key resistance is located at the $335 and $390 levels.
According to the latest data from The Tie, market sentiment toward the entire cryptocurrency market is neutral. Litecoin has the weakest sentiment reading among the top ten cryptos at 77%. Meanwhile, Bitcoin Cash has the strongest at 39%.