Altcoins Follow BTC Down but Refuse to Rally

FXOpen

The altcoin market continues to trade very weak. Peercoin and Namecoin made little gains during the bitcoin rally from $235 to $258. But both altcoins fell substantially once big brother closed in the red. We have seen this pattern play out during the previous BTC move up to $300 and now we’re seeing it again. Yesterday BTC/USD closed down by $4.72 dollars, or 1.88 percent. Peercoin on the other hand, fell by 5.5 percent and Namecoin’s losses exceeded 2% yesterday and a further 5 percent today.

Peercoin Down by 5.5 Percent

Peercoin prices fell from $0.323 to $0.305 yesterday, a decline of 5.5 percent. But despite the losses, PPC/USD is still trading just above the low of its range at $0.308 per coin.

PPCUSDDaily-apr7

A breakdown below the 30 cents mark could lead to a downtrend and more losses toward the yearly low at $0.24. A move below here will intensify the losses. While a break on the high end doesn’t seem likely, as traders we have to be prepared for every scenario, so keep an eye on the 50 cents level.  A breakout above here should trigger a rally in PPC prices. Important resistance levels above $0.50 include $0.60 and $0.70.

Namecoin Breaks Yearly Low

Namecoin fell below its yearly low today. Prices were well supported by the $0.379 mark yesterday but right after the level gave way, the floodgates opened and NMC/USD fell by 2 cents, or just over 5 percent.

NMCUSDDaily-apr7

With the support now cleared, more losses are likely on the way for Namecoin. We haven’t traded this low since October of 2013, so it’s hard to specify any support levels on the downside. The usual suspects, the round figures at 20 and 30 cents are a decent bet though. On the upside, NMC will need to clear the $0.50 mark to end the downtrend. But to jump-start a new rally, the bulls will need to take out the high of the range at $0.55. Important resistance levels above 55 cents can be found at $0.65, $0.70 and $0.75. As usual, whenever trading altcoins, your should keep one eye on big brother bitcoin. So let’s mention the important levels for BTC as well.

Bitcoin Trades Directionless

Bitcoin has been trading directionless for the past two weeks now, moving back and forth, above and below the $250 mark. The important support for BTC/USD stands at $235 per coin. A breakdown below this swing low may usher in a new downtrend, which will mean more losses for altcoins. On the top end, bitcoin will need to clear the triple top at $300 dollars to start a sustainable rally. If BTC continues to trade flat, altcoins will likely continue to lose ground. With limited gains during BTC rallies and exaggerated declines during bitcoin sell-offs, altcoins will have a tough time unless big brother manages to completely turn the tide and rally above $300 dollars per coin.

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