Trade Recommendation: Peercoin
The Peercoin/Bitcoin (PPC/BTC) launched its bull run on January 8, 2018 when it took out resistance of 0.0004. The breakout attracted momentum players which pushed the price to as high as 0.00069461 on January 13. At this price level, PPC/BTC flashed overbought readings. More importantly, it already hit the target of the 0.0004 breakout. Savvy traders armed with this knowledge took the chance to dump positions.
Faced with heavy selling pressure, the pair broke below 0.0004 support on February 2. While PPC/BTC rallied and reached 0.00046760 on February 17, it was a dead cat bounce. On the next day, the market once again went below 0.0004 support.
Technical analysis reveal that Peercoin/Bitcoin has also taken out support of 0.0003. It is currently in oversold territory so a quick buying relief might be on the horizon. After that, however, the pair will most likely continue its drop because the next firm support is 0.0002.
The strategy is to buy as close to 0.0002 support as possible. If the market continues to respect this level, it will likely create a new base and range trade before it can ignite a bull run. We will play the range by selling as close to 0.0004 resistance as possible. The process may take a month.
Daily Chart of Peercoin/Bitcoin on Poloniex
As of this writing, the Peercoin/Bitcoin pair is trading at 0.00024721 on Poloniex.
Summary of Strategy
Buy: As close to 0.0002 as possible.
Disclaimer: The writer owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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