Hello traders! Time to get into the cryptocurrency and we will look at ZEC/BTC cryptocurrency pair. Zcash known for its’ privacy features and many consider it the most private coin available today. Perhaps, for this reason, it still remains on the top of the list by crypto market capitalization.
While investors are seeking a buying opportunity, ZEC/BTC continues to move lower. On a Daily chart, the price remains below the 200 Exponential Moving Average and recent clean bounce off the 50% retracement level suggests the further weakness of the pair.
On the 4H chart, today there was a rejection of 50% Fibs, the downtrend trendline, and the 200 EMA. This is a very strong bearish signal for zCash. It might even produce a new lower low, breaking below 0.004 BTC, although there are few key support levels to watch. First is 76.4% Fibonacci retracement level at 0.004645 BTC, while second is 88.6% Fibs at 0.004181 BTC. Any of them could stop the downtrend and if rejected, reverse the trend to the upside.
At the same time, if ZEC manages to break above the 0.005727 resistance, it would provide more strength to zCash and could, in fact, reverse the trend earlier. For now, it is a valid downtrend and obviously there is more selling the buying going on.
Bias: Bearish while below 0.005727 BTC
Potential Resistance zone: 0.005570 – 0.005800
Potential Targets: 0.004645, 0.004118
Have a profitable trading!