PPC/USD Technical Analysis – 19th Feb 2014

Analysis provided by Ashton Fraser, learn more about his trading strategies at Forex Reversal.

Like a lot of the other Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term, we are seeing a similar Bollinger Squeeze occur on Peercoin as well.

Lets take a look at the hourly chart below (click to expand):

First thing we'll notice is the price rise that occurred a couple of days ago, from a low of 3.630 to a high of 4.22. These are the points from where I've done the Fibonacci study. Since then, look at how price has been slowly squeezed by the Bollinger Bands. The width of the Bands have been getting ever smaller, this cannot and will not go on for much longer. Eventually the bands will break, often bringing with it some whipsaw.

Another important point is how the 38.2% Fib level is holding its ground. Over the past 24 hours, price has barely managed to go beyond this point, and for good reason, as it's right on a psychological whole number, 4.000. And when you get Fibonacci and such round numbers confluencing at the same point, you're pretty much guaranteed to notice.

I expect this resistance to hold firm for the rest of the day.