Analysis provided by Ashton Fraser, learn more about his Forex Reversals trading strategies.
Peercoin vs Bitcoin’s price has been steady falling since a number of weeks, but recently some bulls have put a stop to the persistent slump, although it remains to be seen for how long. I mentioned in my previous analysis of PPC vs BTC in mid-February how price was reacting within a triangle, which had to give way, and the fact that it fell was of no surprise given that’s been the general movement of the pair longer term.
Let’s take a closer look at PPC/BTC on the H4 chart (click to expand):
As can be seen by way of the orange arrow I’ve drawn, price fell rather rapidly from the end of February until the 4th of March, this is indicated by the virtually uninterrupted Awesome Oscillator.
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However, take a look at the blue ellipse I’ve highlighted. Many of the technical indicators were telling us that price could begin a reversal, since the Stochastics were oversold and had crossed upwards, the Accelerator Oscillator had turned green, as had the Awesome Oscillator. In fact, the AC had been green now for a few candles, and the candle immediately preceding the one ellipsed in blue was a doji bar, further strengthening the case for a reversal.
Eventually, price did hike, up till the 38.2% Fibonacci retracement level, barely touching it before coming back down to the 23.6% Fib level, where’s it’s been pretty much resting ever since.
Zooming into the hourly chart, we can see this magnet of a level in further detail, for the past 48 hours (marked in white):
Right now there’s nothing in the technicals I’m seeing right now that tells me the status quo won’t continue for the time being.