Since our last update, BTC/USD hit another milestone at $300 dollars. We are currently quoted at $304.97 dollars per coin, almost $20 dollars higher since Tuesday. But as bitcoin continues to make new highs, the rest of the crypto-market stays flat. Peercoin briefly entered into a downtrend while both Litecoin and Namecoin are still range-bound.
Peercoin Down but Not Out
Peercoin broke below the $0.349 swing low on October 23rd. Prices continued to fall until a low of $0.333 was hit on October 25th. But here the losses stopped and PPC/USD is currently quoted at $0.361 dollars.
Prices have gained over 10 percent from the $0.333 low, a large amount for a retracement. After this sizable upward move, the short-lived PPC downtrend can be considered over. Bitcoin’s rally is another problem. While so far there has been no spillover effect, it’s hard to see large PPC/USD declines while bitcoin is in a strong uptrend. Big brother may need to slow down the gains or rollover before a sustained crypto downtrend can begin.
A move below the $0.333 low is needed to re-start the downward trend. Below here the first support level can be found at the 32 cents level, followed by the round $0.30 figure. Slightly lower we have the four-month low for Peercoin at $0.291, a break below here would exacerbate the losses. On the other side, a decisive breakout above 40 cents may start a new uptrend.
Namecoin Still Range-bound
Alternative crypto-currency Namecoin is still stuck in its range. We are currently quoted at $0.348, about 2 percent lower compared to last week.
The bears managed to bring NMC/USD down exactly to the low of the range at $0.332 but no further. With that we have now formed a double bottom pattern in this altcoin. The first trough of the bottom was on September 12th and the second on October 25th. A decisive breakout below here would start a new downtrend. Further down we find more support at $0.30, $0.286 and $0.274. The 27 cents level is especially important. This is a two-year low for PPC, a clean move below this figure would exacerbate the losses.
On the upside, a breakout above the September 18th high at $0.41 may start a new rally. Higher up some resistance can be found at $0.463, followed by a stronger resistance level at 50 cents.
FXOpen offers the world's most popular cryptocurrency CFDs*, including Bitcoin and Ethereum. Floating spreads, 1:2 leverage, 30% margin call, 0.01 lot minimum transaction size with no maximum — at your service. Open your trading account now or learn more about making your money go further with FXOpen.
*Cryptocurrency CFDs are not available to Retail clients in the UK