Bitcoin’s move lower lead to losses across the board. While altcoins held back during the BTC rally, they fell along with big brother this week. Both Peercoin and Namecoin are pushing on the lower bounds of their trading ranges.
Peercoin Hits 32 Cents but Still in Range
Alternative cryptocurrency Peercoin hit a low of 32 cents yesterday. This is just 2 cents away from the lower bound of the range at $0.30. Since then we have retraced somewhat with PPC/USD currently quoted at $0.341.
Are we can see on the chart above, we are still trading within the yellow rectangle that marks the congestion area, with a low at 30 cents and a high at 50 cents. A decisive breakdown below $0.30 could open the way toward this year’s low at $0.24. A move below here could intensify the losses for Peercoin. On the top end, a breakout above 50 cents should lead to a rally in prices. Important resistance levels above here include $0.60 and $0.70.
Namecoin Pushing on Lower Bound
Namecoin is also trading down, pushing on the lower bound of its range at $0.40. Yesterday we almost hit the level with NMC/USD trading as low as $0.409. The cryptocurrency is currently trading at $0.418, about 4 percent away from the lower bound.
Namecoin’s yearly low at $0.375 is really close to the range’s low however. If you’re bearish on NMC, a more conservative approach would be to wait for a clearing of the support area from $0.375 to $0.40. This may trigger restart the downtrend and trigger a period of long-term losses. To start a new rally, Namecoin will need to break the high of the range at $0.55. Notable resistance levels above here include $0.65, $0.70 and $0.75.
Bitcoin Bounces Off Support
Bitcoin unexpectedly bounced off the support level at $243. While the initial move down traded as low as $235.40, BTC/USD was quick to recover and is currently trading back above the $250 mark. The new level to watch on the downside is $235. A move below here may start a downtrend for bitcoin. This in turn may spillover the losses into the wider cryptocurrency market. As mentioned in one of our previous articles, while altcoins failed to rally along with BTC, they fell by a comparable percentage once bitcoin started falling.