Bitcoin Rangebound, Peercoin Pushing on $0.97

After a highly volatile month that saw BTC prices first fall 30 percent to a low of $285, only to later rally a similar percentage to $408, bitcoin may be finally taking a breather. Since our last update, prices broke below the $381 support mentioned in our article and fell all the way down to $362.77. But from here bitcoin recovered most of the losses (again) and is currently trading at $376 per coin.

oct21-btc

For the past five days, BTC prices have traded is a smaller range between $362 and $388. Keep in mind that both of these price extremes are still untested so they shouldn’t be treated as breakout points yet.

Support and Resistance Levels

Let’s take a look at some potential levels of support and resistance. On the lower end, the first potential weak support stands at the most recent swing low at $362. Below this, the $343-$350 area should support falling prices. A breakdown below may quickly lead to a retest of the psychologically important figure at $300. Lower still, the October 5th swing low at $285 is another level to keep an eye on. The important levels on the downside end with $266. The $266 mark was bitcoin’s high during most of 2013 and will be a crucial milestone on the way down. A break below $266 may trigger a period of prolonged losses for BTC.

On the top end, the first resistance level can be found at $388. But keep in mind that this figure is still untested and thus likely weak resistance. Further up, the post-PayPal high near $450 ($446) should provide some resistance. If this figure is broken, bitcoin could quickly rally toward the $500 round figure.

Peercoin Pushing on $0.97

Peercoin prices are pushing on the important support at $0.97. As we can see on the chart below, this figure got tested on 3 separate occasions in the past two weeks. After each of the tests, the rebound in PPC got weaker and weaker. The latest bounce only took PPC/USD to $1.004 before prices came back to the level. The constant pushing on $0.97 and the inability of prices to substantially rally may lead to an eventual break lower.

oct21-ppc

Some of the potential support levels on the downside are the October 7th swing low at $0.867 (weak support) followed by $0.737. Below this, the September 9th swing low at $0.675 may support prices. Lower still, the Peercoin yearly low at $0.565 is an important milestone. A break below may intensify PPC/USD losses.

Petar Kotevski

Petar is a forex trader and writer with 9 years of experience in financial markets. He has been following bitcoin since 2010. A year ago, as the BTC market matured, he started getting more involved by writing articles on bitcoin and other alternative currencies.

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