BATBTC breaks below key technical support level
Basic Attention Token/Bitcoin Index (BATBTC) Technical Analysis Report for Jan 23, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, BATBTC finished Thursday at 0.00002466 losing BTC0.00000052 (-2.07%). Closing below Wednesday's low at 0.00002493, the cryptocurrency confirmed its breakout through the prior session low after trading up to BTC0.00000056 below it intraday.
Daily Candlestick Chart (BATBTC as at Jan 23, 2020):
Thursday's trading range has been BTC0.00000082 (3.26%), that's slightly below the last trading month's daily average range of BTC0.00000154. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for BATBTC.
Two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and one bearish pattern, the Black Candle.
After trading as low as 0.00002437 during the day, the market found support at the 50-day moving average at 0.00002451. Prices broke below the key technical support level at 0.00002512 (now R1), which is likely to act as resistance going forward. The last time this happened on January 13th, BATBTC actually gained 5.21% on the following trading day. After having been unable to move above 0.00002533 in the previous session, BAT ran into sellers again around the same price level today, missing to move higher than 0.00002519.
Though BAT/BTC is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might speed up should prices move above the close-by swing high at 0.00002609 where further buy stops could get triggered. Selling might accelerate should prices move below the nearby swing low at 0.00002403 where further sell stops could get activated. Further selling might move prices lower should the market test December's close-by low at 0.00002209.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Hikkake Pattern" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for BAT/BTC. Out of 68 times, BATBTC closed lower 60.29% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 58.82% with an average market move of -2.48%.
With seven out of the seven Major Cryptocurrencies closing lower today, the ones that stand out on the negative side are ETCUSD losing -9.63% and LTCUSD closing -6.3% lower. None of the markets managed to end the day in the green. Looking at the other Minor Cryptocurrencies, the winners of the day have been BCNUSD surging 19.15% and LSKBTC closing 7.06% higher. The worst performers of the day have been BTGUSD tanking -9.33% and XEMUSD closing -9.01% lower. Read more