After a short lived rally that saw bitcoin prices bounce from $555 to $598 in two days, BTC is back to doing what it does best – ranging. For the past three days, the cryptocurrency has moved with a small 15 points range between $588 and $573. On a larger scale, the two important lines in the sand for bitcoin are the resistance at $600 and the triple bottom at $550.
If prices manage to break below the $550 level, BTC could quickly find itself trading at $500. Below $500, we can find the next noticeable level of support at the swing low of $421. Lower still, the April 11th swing low at $342 may provide some support. As usual, the round psychological figures between $500 and $300 ($450, $400 and $350) may also serve as potential support areas. On the high end, unless bitcoin can take out $600 and close above the important figure, rallies will be short lived, as evidenced by the latest move up that stopped at $598. If BTC/USD gains past $600, the next level of resistance stands at $633 followed by $650. Higher up, the June 3rd swing high at $667 will be an important milestone. A break above may reignite the deflated May rally.
Overstock Wants to Issue ‘Cryptosecurity’
Overstock.com has been somewhat of a trailblazer in the bitcoin space. The company made a splash in the news back in December when it became the first major US retailer to accept bitcoin payments. But Patrick Byrne, the CEO of Overstock, is not stopping there. He now wants Overstock to be the first major company to issue a ‘’crypto security’’. The plan is to use the bitcoin blockchain and make the security trade as close to their common stock as possible and have it trade at the same price. In other Overstock news, the firm will offer their employees an option to take their bonuses in bitcoin. The company is also looking at ways it can pay its suppliers with the virtual currency.
Peercoin Likely to Head Lower
Unlike bitcoin which is trading more or less in a range, Peercoin looks like it’s getting ready for another leg down. Prices are again nearing the $1.2 support. As can be seen on the chart below, PPC/USD bounced off this support level on four separate occasions in the past two weeks. With Peercoin again retesting the area, a move lower is likely. Below $1.2, the next support for PPC can be found at $1.05, this was the swing low reached last week. But we think that the $1 parity figure will prove to be a much more important support for Peercoin. If PPC/USD manages to break below $1, Peercoin losses could accelerate.