ADABTC stuck within tight trading range
Cardano/Bitcoin Index (ADABTC) Technical Analysis Report for Oct 17, 2020 | by Techniquant Editorial Team
ADABTC finished Saturday at 0.00000932 gaining BTC0.00000012 (1.3%) on low volume. Closing above Friday's high at 0.00000931, the market confirmed its breakout through the prior session high after trading up to BTC0.00000014 above it intraday.
Daily Candlestick Chart (ADABTC as at Oct 17, 2020):
Saturday's trading range has been BTC0.00000030 (3.26%), that's far below the last trading month's daily average range of BTC0.00000045. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for ADABTC. Prices continued to consolidate within a tight trading range between 0.00000907 and 0.00000946 where it has been caught now for the last three trading days.
Even with a weak opening the cryptocurrency managed to close above the previous day's open and close, forming a bullish Engulfing Candle. The last time this candlestick pattern showed up on September 9th, ADABTC gained 2.85% on the following trading day.
After trading down to 0.00000915 earlier during the day, ADA/BTC bounced off the key technical support level at 0.00000916 (S1). The failure to close below the support might increase that levels importance as support going forward.
Though ADA is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Selling might speed up should prices move below the nearby swing low at 0.00000907 where further sell stops could get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Engulfing Candle" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for ADA/BTC. Out of 72 times, ADABTC closed lower 55.56% of the time on the next trading day after the market condition occurred.
With four out of the seven Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are ETHUSD gaining 0.81% and BTCUSD closing 0.37% higher. On the flipside the worst performers have been BCHUSD closing -2.05% lower and LTCUSD losing -1.43%. Looking at the other Minor Cryptocurrencies, the winners of the day have been WAVESUSD surging 8.14% and WAVESBTC closing 7.59% higher. The worst performers of the day have been BCNUSD tanking -10.94% and BCHBTC closing -2.26% lower. Read more