Bitcoin Goes Nowhere, Peercoin Closer to Breakdown
Bitcoin has continued to range as prices have been stuck between a high of $633 and a low of $600 per coin. During the last 7 days, BTC/USD has remained locked in an even tighter range of $623 to $606. The longer we remain in this range, the more we increase the likelihood for a breakout in either direction. What are the possible scenarios?
On the top side, a breakout above $633 will expose BTC to $650 (a small resistance level) and further up to $667. The June 3rd swing high at $667 remains a key milestone, going above may induce a new rally in bitcoin. Below, a breakdown past $600 may lead to quick losses toward $550. Beyond this, the round psychological level at $500 will also provide support. All in all, until we get a decisive breakout in either direction, stay out of bitcoin. For easier viewing, we marked the congestion area with yellow on the chart below. The technical levels mentioned above are also displayed on the daily chart.
Peercoin gets closer to a breakdown
The possible Peercoin breakdown we mentioned in our Thursday article just got closer to reality as PPC bounced clean of the 1.3 mark. Yesterday, PPC/USD (bid) fell to a low of 1.301. The scenario talked about in my previous article still stands. The $1.3 figure will be an important milestone. The level marked the low in Peercoin back in April when PPC/USD fell to $1.280. It was subsequently tested on two more occasions, once in late June, and recently in early July.
The constant slow creep toward $1.3 and the retesting of this level means that a break below this figure is likely going forward. It is unclear how low we may go on a move below $1.3, although with the low volume in PPC, a fall close to $1 per coin is not to be ruled out. The chart below shows the constant testing of the $1.3 level by Peercoin. The alternative currency may be waiting for its cue from big brother Bitcoin. A downward move in BTC prices below $600 will likely lead to PPC/USD breaking the $1.3 mark.