PPC/BTC Technical Analysis – 1st April 2014

After a steady fall from late last week, Peercoin vs Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term seems to have settled for the meantime. entering into a Bollinger squeeze.

Let's take a closer look at the PPC/BTC chart below on the H4 timeframe (click to expand):

I've performed the Fibonacci study from the high of last week at 0.00496 until the low of the year at 0.00418.

Take a look at the downtrend, which although short lived, was swift and sharp. What's interesting is that we have two candles both open and close below the lower Bollinger band, (circled in blue) a rare occurrence indeed, and one that should alert a wise trader to a potential pullback, especially given the fact the Stochastics were extremely oversold.

Consequently, there was a retrace, to the 23.6% Fib level at 0.00435. Since the initial test of 23.6%, there have been half a dozen further such tests, and ultimate rejections, resulting in a period of ranging between the current low and the first Fib level.

Overall, we can see how there's been two periods of consolidation (marked in a white ellipse), one last week, and one this week - as just mentioned happening right now,. This is reflected by the Bollinger bands becoming narrower, and many of the candles possessing long upper and lower wicks, such as dojis and spinning tops, signifying indecision in the market. In fact, such is the consistent nature of the squeeze, that all three Bollinger lines (upper, middle, lower), are all now virtually horizontal, telling us this is a very small range of trading right now.