Cryptocurrencies Little Changed as Auction Deadline Looms

FXOpen

Cryptocurrencies are trading little changed since our last update two days ago. Bitcoin continues to trade within the small $15 dollar range between $385 and $370. Namecoin is still tucked within its wedge pattern. Market participants seem to be in a ‘’wait and see mode’’ ahead of the results for the second bitcoin auction.

Second Bitcoin Auction Today

The registration period ended on December 1st and the online auction period will start at 8:00am EST today and last until 2:00pm EST. This is 2 PM CET until 8 PM CET for our European friends. The global head of FX strategy for Citi, Steven Englander, expects the second bitcoin auction to receive bids lower than the current market price. This would be bearish for the cryptocurrency and will probably lead to a selloff in altcoins as well. For more on potential support/resistance levels for bitcoin and Namecoin, take a look at our previous article. Due to the minor changes in prices in the last two days, the levels are still relevant.

Peercoin still pushing on $0.70

Alternative cryptocurrency Peercoin is still weak, trading practically glued to the important $0.70 level. During the past week, PPC/USD had a short-lived rally to $0.758 which was used by the bears to sell at a better price. We are currently trading at $0.71 per coin, after reaching a low of $0.703 yesterday.

PPCUSDH4-dec4

If Peercoin manages to break $0.70, the first weak support can be found at the September 9th swing low at $0.675. This is followed by the $0.60 round figure. The yearly low at $0.565 will be especially important, a breakdown below may lead to a longterm decline in PPC prices. The half-parity mark ($0.50) is another milestone to take note of.

On the top end, a breakout above the $0.80-$0.834 resistance area will likely mean an end to the losses. Further up, the next potential resistance level is set at $0.90 flat, followed by the $0.97-$1 area. A move above the $1 parity level will likely accelerate any gains toward $1.10. Higher still, we find more resistance levels at $1.135 and $1.20.

Litecoin at $3.50 after Uneventful Week

Bitcoin’s silver, Litecoin, also had an uneventful week. Prices have been stuck in a tight range between $3.46 and $3.62 since Thursday. Like other cryptos, it is likely that Litecoin traders are also waiting for today’s auction results before entering new positions.

LTCUSDDaily-dec4

The $3.40 support will be important milestone for LTC. A clean break below here (the current low stands at $3.389), may lead to losses toward the $3 mark. Since this year’s low for LTC is at $3.05, a move below $3 dollars may lead to a sustained downtrend. On the upside, we could see some stabilization in prices if LTC/USD gains a foothold above $4 dollars per coin.

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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.

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