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The price trend of the market’s altcoins has often been determined by the price operation of the world’s largest cryptocurrency. This has also been the case in the last 72 hours, with Bitcoin’s drop below $60,000 and subsequent inability to rebound having a major effect on the likes of Filecoin, Bitcoin Cash, and Polkadot, among others.
FIL was trading about $150 at the time of publishing, with the alt seeing two heavy downtrends in the last 72 hours alone. Although one saw the crypto drop by 15%, the other saw the alt drop by more than 9% in a matter of hours. It is worth recalling, though, that while Filecoin’s downturn was precipitated by Bitcoin’s decline, April had not been a good month for the alt prior to that.
In reality, while FIL did spike in the final days of March, unlike the rest of the industry, FIL never really reported a significant increase in April.
The results of FIL’s technical indicators highlighted the magnitude of the bearishness in the industry, as the dotted markers of the Parabolic SAR were well above the price candles. The histogram of the Awesome Oscillator has descended into the negative field, with the same flickering bearish signals.
The Distributed Storage Office of China’s Communications Industry Association recently warned that Chinese firms are using Filecoin to issue illegal wealth management goods.
Bitcoin Cash [BCH]
Bitcoin Cash, like Filecoin, has seen a string of dramatic drops over the last three days, with the fork coin dipping by 28 percent and 15 percent on the heels of different downtrends. Unlike FIL, the month of April was fruitful for BCH, with the cryptocurrency soaring on the charts to a local high of over $1,150. However, after the above corrections, the alt was priced at just over $912 at the time of publication.
At the time of publication, there had been some turnaround, with the last few trading sessions displaying green market candles.
Although the mouth of the Bollinger Bands remained large at press time, indicating a degree of market instability, Chaikin Money Flow was falling below zero, indicating the strength of capital outflows.
Since BCH’s price fortunes are so closely tied to Bitcoin’s, a trend turnaround in the latter would be critical to BCH’s resumption of gains. Until then, any chart turnaround is likely to be fleeting, particularly because the alt’s indicators haven’t been pointing in the direction of the market bulls.
Polkadot, the cryptocurrency ranked eighth on CoinMarketCap’s indexes, had sunk to its 31 March price level at the time of publication. The same was the result of a series of corrections, with the alt dropping by 20% and 15% in different instances within a 72-hour span. The timing of these corrections, on the other hand, couldn’t have been worse, with the cryptocurrency reaching its all-time high of $47.63 only a few hours before they began.
The extent of the resulting bearishness was illustrated by DOT’s indicators, as the Relative Strength Index remained close to the oversold region and the MACD line remained below the Signal line on the histogram.
It’s worth remembering here that a previous report has highlighted the market’s increasing selling pressure, with the same forecasting that DOT might fall below the $35 mark.