After a hectic last week that saw BTC/USD flash crash to a low of $334, prices have finally stabilized somewhat. For the past six days, bitcoin has been moving back and forth around the important $500 figure. The high of this congestion area stands at $528.92 and the low is at $483.03. A clearing of $530 may propel prices toward the $550 milestone. Bitcoin will have a hard time breaking this figure however, at least on its first try. This was the previous important support on the way down. A break of $550 on August 13th lead to quick losses of over $200 in the next few days.
On the lower end, a decisive breakdown below $480 may lead to renewed losses toward $450. Lower still, we can find some support at the round $400 level. The area from $350 to the $334 swing low reached on August 17th will be strong support. If BTC can manage to take it out, bitcoin losses could spiral out of control. This is an unlikely scenario, at least in the near term. The $330-$350 area will be well bid after last week’s spike lower.
Peercoin Bounces Off Parity
As expected in our previous article, PPC prices were unable to break the important $1 parity level and have since corrected lower. After the unsuccessful breakout, Peercoin retraced almost 20 percent to hit a swing low of $0.803 on Saturday. A small rally is underway since then with PPC/USD moving up 10% to $0.907. Similarly to bitcoin, PPC prices are also in a range, albeit a much larger one. On the top end, the $1 parity will be an important milestone for Peercoin. A decisive break above may lead to extended gains toward $1.10. Higher up, the next level of potential resistance stands at $1.20.
A break of the $0.78 to $0.80 support area may lead to more losses toward the August 13th swing low at $0.626, although the real ‘’line in the sand’’ for PPC will be the August 18th low at $0.565. This was the stopping point for last week’s down move. A breakdown below $0.565 will likely lead to a resumption of the longterm trend lower.