Bitcoin Cash aimed for its 50% Fibonacci level, which was $1,075.5, to enable a quick recovery on the charts, while Ethereum Classic threatened a 30% drop if it was unable to maintain its hold on the $65-support level. In conclusion, Filecoin’s recovery did better than the majority of alternative cryptocurrencies, but its gains were capped at the $95 resistance level.
Bitcoin Cash abbreviated as BCH
The change in fortunes of the cryptocurrency market as a whole was epitomised by the bearish reversal that occurred in Bitcoin Cash. On the 12th of May, BCH reached a local peak price of $1,642 but has since dropped to a low of $500 following the crypto sell-off. This represented an astounding loss of over 70 percent in only eight days. Despite the fact that BCH was able to recover above its 78.6% Fibonacci level ($747.4), the candlesticks remained below their 20-SMA (red), 50-SMA (yellow), and 200-SMA (green) at the time this article was written.
It is anticipated that the recovery process for most alternative cryptocurrencies will be a slow one, and Bitcoin Cash (BCH) will not be an exception to this rule.
One of the most important areas of resistance was located at the 50% Fibonacci level ($1,075.5), which was also close to the 200-day simple moving average. The reclaiming of this area might result in an increase in costs in the future. Lower highs on the RSI indicated a weakening for BCH even before there was a general pullback in the market. If the price breaks below $747, it may present some profitable long-term opportunities. On the Awesome Oscillator, there was some evidence of bullish momentum; however, it was not sufficient to warrant a breakout at this time.
Ethereum Classic, also known as ETC
Ethereum Classic’s 4-hour charts showed the cryptocurrency at a critical juncture between its 20- and 200-hour simple moving averages (green). The press time level was significant because it coincided with the 50-day simple moving average not only on the hourly but also on the daily timeframe. The potential for a breakdown was right around the corner, and it had the potential to set off a 30% retracement that would head towards the $47.8 support.
If the current support level is maintained, it is reasonable to anticipate some sideways movement over the course of the upcoming sessions. If Ethereum is successful in climbing back above $3,000, there will be a corresponding effect on Ethereum Classic (ETC). If this scenario plays out, the price could go up by 20%, reaching $88 per share.
According to the Squeeze MomentumIndicator, bearish momentum was on the decline; however, this served more as a hedge against breakdown rather than as a catalyst for a price rally. At the time of this publication, the RSI was hovering around 40, which is a level that indicates weakness.
The Filecoin symbol, FIL
The sellers prevented a breakout from occurring when Filecoin’s price reach
ed $95, despite the price having increased by an impressive 42% after it rebounded from the $65.3 support. In contrast to the majority of alternative cryptocurrencies, however, the state of its technicals was slightly bullish. The RSI found a level of stability just below the 50-point mark, and the MACD line continued to rise above the Signal line.
Expect another 17% increase toward the $124.4 resistance level if the buyers are successful in pushing FIL above its $10.5 resistance level. If this upper ceiling is broken through, there is potential for FIL to see gains all the way up to $164.5. On the other hand, if it remains intact, the bulls will be stopped at this point.