Cryptocurrencies Fall Pauses as Bitcoin Enters Range

FXOpen

In the past four days bitcoin has been stuck in a range, gyrating around the $350 level. Bitcoin’s indecisiveness lead to rangebound market movement across the board as other cryptocurrencies settled into their own ranges. Prices stayed in a relatively small congestion area between a high of $360 and a low of $337.18. Until big brother bitcoin breaks out beyond one of these two extremes, other cryptos should remain in a range as well.

oct28-btc

A move above $360 will likely signal an end to the current downtrend, at least in the short term. But bitcoin will need to clear the $408 swing high before a rally can truly get under way. On the lower end, a break below $337 should lead to further losses toward the $300 round figure. Beyond $300, the next support can be found at the October 5th swing low at $285, quickly followed by the $266 figure, a high for bitcoin during most of 2013.

Peercoin Enters Range

Alternative cryptocurrency Peercoin also entered its own range. The high bound can be found at $0.90 while the low of the range is at $0.823. Similarly to bitcoin, a PPC break above $0.90 may signal an end to the losses but it wouldn’t automatically be a bullish event. For that, we would need to see the altcoin climb above the $1 parity level.

oct28-ppc

On the lower bound, if PPC/USD moves below $0.82 (or better yet below the $0.80 round figure), the next support can be found at the October 5th swing low at $0.736. Lower still, the September 9th low at $0.675 may act as support to falling prices. To top of all of, the Peercoin yearly low at $0.565 will be an important milestone for the cryptocurrency, a break lower may lead to accelerated losses.

Namecoin Joins in the ‘’Fun’’

Not to be the odd one out, Namecoin joined in the fun and made a range of its own. The high of the NMC congestion area can be pinned at $0.95 and the bottom at $0.864. A move above $0.95 may end the current downtrend but similarly to Peercoin, a break above $1 will be needed to stoke the bullish momentum.

oct28-nmc

On the lower end, the first potential support if the lower bound at $0.864 gives way can be found at $0.783, quickly followed by the yearly low at $0.751. It’s important to follow bitcoin’s movements as well, as other cryptocurrencies will often get their cues from their big brother.

Trade global forex with the Innovative Broker of 2022*. Choose from 50+ forex markets 24/5. Open your FXOpen account now or learn more about trading forex with FXOpen.

* FXOpen International, Innovative Broker of 2022, according to the IAFT

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Analysis

Market Analysis: American Currency Rises Sharply after Fed Meeting Will Stagflation Persist in the UK? EUR/GBP Volatility May Be an Indicator Market Analysis: Commodity Currencies Find Short-term Bottom USD/CAD Analysis: How the Bank of Canada Decision Affected the National Currency Commodity Currencies, Pound and Euro in Search of Medium-term Bottom

Latest articles

Forex Analysis

Market Analysis: American Currency Rises Sharply after Fed Meeting

As expected, the decision on the interest rate had a powerful impact on the markets. Thus, the euro/US dollar pair lost more than 100 pp in just a couple of hours and updated its recent low at 1.0630,

Commodities

Oil Analysis: Finally, A Bearish Reversal?

The policy of OPEC+ countries to voluntarily reduce oil production was one of the drivers thanks to which the price of WTI oil increased by approximately 40% from its low in June. In such cases, it is appropriate to use

Commodities

Central Bank Week Shakes Up Gold Market

Yesterday, the main event of the week took place — the Federal Reserve meeting, which had a noticeable impact on the market of assets denominated in US dollars. But besides the Fed meeting, there are a number of other events this

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.