The price action of the world’s largest cryptocurrency has often dictated the movements of the market’s altcoins. This was the case over the last 72 hours as well, with Bitcoin’s fall below $60,000 and its failure to recover having a significant impact on the likes of Filecoin, Bitcoin Cash, and Polkadot, among others.
At the time of writing, FIL was trading at around $150, with the alt recording two strong downtrends in the last 72 hours alone. While one saw the crypto fall by 15%, the other saw the alt depreciate by over 9% in a matter of hours. It’s worth noting, however, that while Filecoin’s depreciation was precipitated by Bitcoin’s fall, April hadn’t been a great month for the alt until then either.
In fact, while FIL did surge in the last few days of March, contrary to the rest of the market, FIL never really registered a hike of note in April.
The scale of the bearishness in FIL’s market was underlined by the findings of its technical indicators as Parabolic SAR’s dotted markers were well above the price candles. Awesome Oscillator’s histogram dove into the negative zone, with the same flashing bearish signals.
FIL was in the news recently after the Distributed Storage Office of China’s Communications Industry Association warned that Chinese companies are using Filecoin to issue unauthorized wealth management products.
Bitcoin Cash [BCH]
Like Filecoin, Bitcoin Cash also recorded a series of sharp falls over the past three days, with the fork coin falling by 28% and 15% on the back of separate downtrends. Unlike FIL, the month of April had been a fruitful one for BCH, with the crypto surging on the charts to hit a local top of over $1,150. However, with the aforementioned corrections setting in, the alt was valued at just over $912 at press time.
At the time of writing, some recovery was afoot, with the last few trading sessions noting green price candles.
While the mouth of Bollinger Bands was still wide at press time to indicate a degree of price volatility, Chaikin Money Flow was dipping below zero to underline the strength of capital outflows.
Since BCH’s price fortunes are heavily linked with Bitcoin, a trend reversal in the latter will be key to BCH gaining again. Until then, any recovery on the charts is likely to be temporary, especially since the alt’s indicators haven’t been leaning towards the market bulls.
Polkadot, the crypto ranked 8th on CoinMarketCap’s charts, had fallen to its 31 March price level, at press time. The same was a product of a series of corrections, with the alt falling by 20% and 15% in separate instances within a 72-hour window. The timing of these corrections, however, couldn’t have been worse, with the crypto touching its ATH of $47.63 just a few hours before they set in.
The scale of the ensuing bearishness was highlighted by DOT’s indicators as Relative Strength Index was holding firm close to the oversold zone, MACD line continued to hover below the Signal line under the histogram.
Here, it’s worth noting that a previous analysis had underlined the rising selling pressure in the market, with the same predicting that DOT might go below the $35-mark.
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