Bitcoin Rangebound, Peercoin Pushing on $0.97

Petar Kotevski -

After a highly volatile month that saw BTC prices first fall 30 percent to a low of $285, only to later rally a similar percentage to $408, bitcoin may be finally taking a breather. Since our last update, prices broke below the $381 support mentioned in our article and fell all the way down to $362.77. But from here bitcoin recovered most of the losses (again) and is currently trading at $376 per coin.

For the past five days, BTC prices have traded is a smaller range between $362 and $388. Keep in mind that both of these price extremes are still untested so they shouldn’t be treated as breakout points yet.

Support and Resistance Levels

Let’s take a look at some potential levels of support and resistance. On the lower end, the first potential weak support stands at the most recent swing low at $362. Below this, the $343-$350 area should support falling prices. A breakdown below may quickly lead to a retest of the psychologically important figure at $300. Lower still, the October 5th swing low at $285 is another level to keep an eye on. The important levels on the downside end with $266. The $266 mark was bitcoin’s high during most of 2013 and will be a crucial milestone on the way down. A break below $266 may trigger a period of prolonged losses for BTC.

On the top end, the first resistance level can be found at $388. But keep in mind that this figure is still untested and thus likely weak resistance. Further up, the post-PayPal high near $450 ($446) should provide some resistance. If this figure is broken, bitcoin could quickly rally toward the $500 round figure.

Peercoin Pushing on $0.97

Peercoin prices are pushing on the important support at $0.97. As we can see on the chart below, this figure got tested on 3 separate occasions in the past two weeks. After each of the tests, the rebound in PPC got weaker and weaker. The latest bounce only took PPC/USD to $1.004 before prices came back to the level. The constant pushing on $0.97 and the inability of prices to substantially rally may lead to an eventual break lower.

Some of the potential support levels on the downside are the October 7th swing low at $0.867 (weak support) followed by $0.737. Below this, the September 9th swing low at $0.675 may support prices. Lower still, the Peercoin yearly low at $0.565 is an important milestone. A break below may intensify PPC/USD losses.