Trade Recommendation: Peercoin
The Peercoin/Bitcoin pair turned bearish on May 18, 2017 when it posted a lower high of 0.00131044. The downtrend was confirmed when it broke critical support of 0.0008 on May 25. From there, the market generated a series of lower lows and lower highs as it breached one support level after another. The pair only stabilized on November 2 when it established support at 0.000165.
The market consolidated at that level for about a month. On December 12, the successful retest of support at 0.000165 signalled the end of the consolidation period. The market skyrocketed to as high as 0.00069461 on January 13. Bottom pickers exploited the market’s rapid ascent as they took profits. Facing heavy selling pressure, the market pulled back to as low as 0.00042 on January 17. The temporary dip is the window for you to place buy orders.
Technical analysis reveal that the market is creating a bullish higher low set up at 0.00043. Volume has been anemic for the last two weeks suggesting that sellers are losing ammunition. This may indicate that the consolidation period is almost up.
The strategy is to buy as close to 0.00043 as possible. Should this support level hold, the market will likely march towards resistance of 0.0006 in one month.
Daily Chart of Peercoin/Bitcoin on Poloniex
As of this writing, the Peercoin/Bitcoin pair is trading at 0.00045 on Poloniex.
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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