Volatility Is Back In Cryptocurrencies - Forex News by FX Leaders

Volatility Is Back In Cryptocurrencies

Posted Thursday, April 4, 2019 by
Shain Vernier • 1 min read

Cryptocurrencies are back in vogue, attracting traders and posting wide daily ranges. The story of the week has been Bitcoin’s return to $5000 ― it now appears that the other coins are anxious to get in on the action.

The past 24-hours on cryptocurrency exchanges have continued the early-April trend of robust price action. Here is a quick look at the daily performance of the leading coins:

Coin                                      Gain/Loss          Key Number

Bitcoin (BTC)                            -2.94%                   $5000

Bitcoin Cash (BCH)               -12.48%                    $300

Ethereum (ETH)                     -9.22%                     $150

Litecoin (LTC)                        -10.24%                      $85

Ripple (XRP)                           -8.09%                   $0.3350

The table above illustrates the current degree of correlation between the leading cryptos. All of these markets are taking their cues from Bitcoin and $5000 ― BTC headed south and the rest soon followed.

Bitcoin Falls Below $5000, Cryptocurrencies Sell-Off

Following a Spike High above $5300, April Bitcoin futures have fallen back below the $5000 handle. Price action is very similar on the cash markets, with BTC holding firm around $4950.

April Bitcoin Futures (BTC), Daily Chart
April Bitcoin Futures (BTC), Daily Chart

Here are the key levels to watch in this market:

  • Resistance(1): Spike High, $5325
  • Support(1): 38% Retracement, $4760

Bottom Line: Until proven otherwise, the daily uptrend in Bitcoin must be respected. Until elected, I will be buying BTC on the cash markets at $4765. With an initial stop at $4689, this trade is worth $75 per BTC on a slightly sub-1:1 risk vs reward management plan.

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About the author

Shain Vernier // US Analyst
Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.
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