BATUSD breaks below key technical support level
Basic Attention Token/US Dollar Index (BATUSD) Technical Analysis Report for Nov 22, 2020 | by Techniquant Editorial Team
BATUSD finished Sunday at 0.2197 losing $0.0138 (-5.91%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (BATUSD as at Nov 22, 2020):
Sunday's trading range has been $0.0285 (12.21%), that's far above the last trading month's daily average range of $0.0136. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for BATUSD.
After trading down to 0.2082 earlier during the day, the market bounced off the key technical support level at 0.2112 (S1). The failure to close below the support could increase that levels significance as support going forward. Prices broke below the key technical support level at 0.2273 (now R1), which is likely to act as resistance going forward. After having been unable to move above 0.2345 in the prior session, BAT ran into sellers again around the same price level today, failing to move higher than 0.2367. The last time this happened on Friday, BATUSD actually gained 15.54% on the following trading day.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and might now be heading back down towards the mean of the Bollinger Bands at 0.1996.
While the cryptocurrency is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Support S1" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for BAT/USD. Out of 108 times, BATUSD closed higher 59.26% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 59.26% with an average market move of 5.82%.