Red! Red Everywhere!

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The week is going from bad to worse for cryptocurrencies. Yesterday bitcoin broke the important support level at $550 and proceeded to lose another 5% in the next few hours. The breakdown served as a catalyst to other altcoins. Litecoin fell below $5 per coin, Namecoin hit parity and Peercoin hit a daily low of $0.626 yesterday. With the latest down move, PPC has lost over 50 percent of its value in the last three weeks alone!

Bitcoin breaks important support at $550

Bitcoin broke the important support level at $550 yesterday. The area was tested on three separate occasions in the last 3 months thus it’s not a surprise that once it gave way, prices immediately lost over 5 percent.  Where are the next support levels? With prices currently trading at $527 per coin, the next support can be found at the round psychological figure of $500. Lower still, the $411 swing low may provide some support. The yearly low at $342 will be an important milestone. If BTC/USD breaks below $342, bitcoin may enter a period of prolonged losses. As usual keep an eye on the 50 and 00 round figures between 300 and 450 ($350,$400,$450,$500).

btcusddaily

 

Peercoin halves in 3 weeks

The value of one Peercoin has halved in the past 3 weeks. In my article posted on July 22nd I suggested that ‘’the constant slow creep toward $1.3 and the retesting of this level means that a break below this figure is likely going forward.’’

Three weeks later and PPC is currently trading at $0.70 per coin, after hitting a yearly low of $0.626 yesterday. It’s difficult to say where we will go from here. The selloff has been massive so I wouldn’t exclude a sizable retracement going forward. However I will rarely go against the trend and in this case even the momentum is strongly downward. Add to this the fact that bitcoin’s break below $550 may lead to more losses for the crypto and things are not looking good for Peercoin.

Some of the levels to watch out for are yesterday’s swing low at $0.626 and $0.78. On the high end, the August 12th swing low at $0.78 may act as resistance going forward. Both of these levels are still very much undefined. We will need more interaction with the price before dubbing them as significant support/resistance areas.

ppcusddaily

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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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