Analysis provided by Ashton Fraser, learn more about his trading strategies with the forex reversal indicator.
Peercoin vs Bitcoin continues to fall today, as it has been doing for the past week. Will the trend continue as such?
Let's take a closer look at the PPC/BTC H4 chart below (click to expand):
I've performed the Fibonacci study from the last major swing high on the 13th of this month at 0.00537, until today's low at 0.00445.
The first thing we notice is how smooth the downtrend has been for the past seven days. Take a look at the Awesome Oscillator over this period - majority of the bars have been red, (around 80% of them), thus affirming the gentle yet definite trajectory. We can also see how the middle Bollinger line, once on it's way down, had zero interruptions or hiccups, it was likewise a smooth southern movement.
Fast forward to today, and specifically the candlestick that made the low at 0.00445, marked with a blue ellipse, and we notice how it's lower wicks is exceedingly long, whilst closing below the lower Bollinger band. This at the very least provides a mild bullish potential, hence other technicals are needed. However, what we notice is that both Bill Williams' Oscillators, namely the Accelerator and the Awesome, are both still red.
Yet, price still managed to rise enough to test the 23.6% Fibonacci retracement level, so there's at least some bulls at work. Observing at what price is doing right now though, reveals some indecision. Take a look at the latest candle that is being formed on the H4, marked in a red ellipse. This is a classic doji, where it's upper wick and lower wick are of equal length, whilst the opening price and closing price are the same. I.e. price moved a lot during candle formation, but did not settle on a specific direction. Ok, so the candle still has some time to complete, but nevertheless, it hints to consolidation.
And this is what I expect to happen over the next few hours, since on lower timeframes, we have multiple conflicting technicals. I doubt price will move much for the rest of the day.
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