Cryptocurrencies Range After Volatile Last Week

Things are calmer in cryptoland after a volatile last week. Bitcoin is stuck in a 10 percent range between $480 and $530 and Peercoin is trading between $0.8 per coin and parity. This is a sharp contrast with last week that saw BTC spike to a low of $334. Things are also looking up for Bitcoin’s silver, Litecoin. The altcoin has managed to climb back above the $5 mark after hitting a low of $3.40 on August 18th.

Bitcoin in a range between $480 and $530

Bitcoin is currently stuck in a range, marked in yellow on the chart below. The low point of the congestion is marked by the swing low at $483, while the high can be placed at the August 21st spike high at $528.92. A definitive break below $480 may lead to more losses toward $450. Below this, the $400 round figure may provide some support. Lower still, the $330 to $350 area will likely be well bid to repel any bearish assaults, at least in the near term.

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On the high end, a breakout above $530 may lead to a retest of $550. This level was important support on the way down and will likely be a significant resistance to any bitcoin rallies.

 

Peercoin stuck between $0.80 and $1

Alternative cryptocurrency Peercoin is also stuck in its own range. The relatively large 20 percent congestion area spans from the $0.80 swing low to the important $1 parity level. After a near 100 percent rally from a multi-month swing low at $0.565 last week, PPC has been relegated to small, slow, unpredictable movements. The weekly high stands at $0.938 and the low is at $0.814.

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Going forward, Peercoin will need to break the important parity level before any rally can truly take hold. If it does, the first levels of possible resistance on the way up stand at $1.10 and $1.20. On the downside, the $0.80 support area stands in the way of more PPC losses. If this level is broken, the swing low at $0.626 may provide some relief for the bulls. Lower still, the multi-month low at $0.565 reached on August 18th will be important support on the way down.

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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