Bitcoin’s slide in the past two days sparked similar moves in altcoins. Peercoin declined by 2 percent and Namecoin fell by 3% while bitcoin’s silver, Litecoin, is trading slightly down at – 0.3%.
Peercoin Pushing on $0.70 Again
Alternative cryptocurrency Peercoin is again pushing on the support near $0.70. As can be seen on the daily chart below, this figure has been tested on at least four separate occasions in the past two months. Each swing down clawed some more ground. The first push at the start of October hit a low of $0.736 while the most recent one spiked down to $0.70 flat.
The likelihood for a break lower increase the longer prices linger above this area. If PPC/USD manages to convincingly break $0.70, the first (weak) support level can be found at the September 9th swing low at $0.675. Below this, the $0.60 round figure is another possible support, followed by the important yearly low at $0.565. A break below here may lead to a longterm decline in PPC prices.
On the upside, a breakout above the $0.80-$0.834 resistance area will likely mean an end to the losses, at least in the short-term. Higher up, we find some resistance at $0.90 flat, followed by the $0.97-$1 area. You can see the rest of the potential levels on the chart above.
Litecoin Nears Important Support at $3.40
Litecoin is back to trading near the important support at $3.40. This level has managed to hold up LTC prices for three months now. The first bounce happened in late August at $3.40. About 47 days later, LTC/USD again failed to break lower, this time stopping at $3.389. Few days ago on November 21st we had another push lower (swing low at $3.416) that got reversed by bitcoin’s move up from $360 to $389.
Similarly as with Peercoin’s $0.70 handle, with each retest of $3.40 a break lower becomes more likely. The current low stands at $3.389. A clear break below here could see prices fall toward the $3 figure. This year’s low for Litecoin is at $3.05. Since this was caused by a spike on low volume, a better milestone would be the $3 round figure. A move below $3 dollars will likely lead to more losses for LTC. On the upside, we could see stabilization or even some recovery in prices if Litecoin can clear the $4-$4.20 resistance area.
Bitcoin Black Friday and Auction Bids
As usual, whenever trading altcoins, keep one eye on big brother bitcoin. Since our next update will be on Tuesday, December 2nd, let’s talk about two events that may have an effect on the price of BTC in the meantime. Tomorrow, the event known as Bitcoin Black Friday will take place. Similarly to the traditional Black Friday in the USA, bitcoin’s event will feature discount by BTC merchants. A surge of buying with bitcoins is expected and since almost all merchants immediately convert their BTC for cash, the event may be price-negative. The great unknown here will be if bitcoin payment processors Coinbase and BitPay will sell all the coins they receive on Friday or spread out the selling out over several days, thus limiting the market impact.
The second event is the second bitcoin auction. The deadline for the sale of 50,000 BTC is set for December 4th. However, as was the case with the first auction back in June, we may get market speculation or news articles about the bids submitted well before the deadline.