PPC/BTC Technical Analysis – 8th May 2014

From a longer timeframe perspective, Peercoin vs Bitcoin continues to hover around the last major Fibonacci zone of support, yet

From a longer timeframe perspective, Peercoin vs Bitcoin continues to hover around the last major Fibonacci zone of support, yet if we zoom into a lower timeframe such as the fifteen minute, we can see it’s been more than merely a random levitation.

During my analysis yesterday, I mentioned how the bears were about to hit a wall, eventually to be faded out my the 78.6% Fibonacci retracement level. Observe the current PPC/BTC H4 chart below (click to expand):

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ppcbtch4_08_05_2014

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I explained, “Look at the Stochastic Oscillator, how it’s been on a smooth southern trajectory over the course of the past two days – but right now it’s approaching oversold territory, alerting us to a potential pause in the (weak) bears. We also have conflicting signals from the Bill Williams’ indicators of the Accelerator and Awesome Oscillators. I can’t see much movement for the rest of the day, perhaps a testing of the 78.6% Fib level at 0.00470.” It’s pretty obvious that 78.6% has halted the bears, but as I stated at the very top, the M15 timeframe gives us some more information.

Check out the PPC/BTC M15 chart below (click to expand):

ppcbtcm15_08_05_2014

Performing the Fibonacci study from the swing high at 0.0049 until the swing low at 0.0047, it’s amazing to see how Fibs still play a vital role, even in such miniscule movements and ranges. Look at how price retraced to the 38.2% Fib level to the very pip at 0.00477, before dropping back down and then again testing the 23.6% Fib level on a couple of occasions at 0.00474. Of course, it’ very hard to trade on such a timeframe, especially on such a pair, but this is to illustrate the point that classic technicals are a useful tool in almost any scenario.

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