After Peercoin vs Bitcoin’s crazy move up at the start of last week, we’re now seeing stability resume, with one particular zone seemingly a rather sticky point. Will we see a breakout this week?
Let’s take a closer look at the latest PPC/BTC chart on the four hour timeframe (click to expand):
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I’ve performed the Fibonacci study from the swing low at 0.0039, until the month’s high at 0.006, a 50% increase in just three days.
I want to focus on what’s happening right now however, it’s very intriguing, since a Bollinger squeeze is in place, as we can see how tight all three Bollinger lines (upper, middle, lower) have become, and this is primarily down to one reason – the 38.2% Fibonacci retracement level at 0.0053, marked in red. I have to say the market must have applied some really sticky glue across 38.2% over the weekend because price just doesn’t want to get away from it this week.
But, let not that glue lead you down a seemingly predictable path, because nothing is predictable in the world of currency / coin trading – except for of course, its innate unpredictability.
That’s not going to stop me from making a prediction however, because I know one thing, the squeeze must come to an end. I’m going to stick out my neck and say this – the 38.2% Fib’s support won’t last for the next 48 hours, (like it has for the previous 48 hours), and we’re going to be seeing price break below 0.0053, to test the 50% line later this week. I say this for a few reasons; we can see how the AC and AO have turned red since a few candles, and the Stochastics are heading south, still not yet in oversold territory. It’s not just on H4 I’m seeing bearish technicals, the higher Daily timeframe is telling me the shorts are encircling the market like vultures; although admittedly this isn’t the Kalahari.