BCHBTC unable to break through key resistance level
Bitcoin Cash/Bitcoin Index (BCHBTC) Technical Analysis Report for Nov 10, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, BCHBTC ended Sunday at 0.0323 edging higher BTC0.0002 (0.62%) on high volume. Trading up to BTC0.0005 lower after the open, BCH/BTC managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Saturday's high at 0.0322, the cryptocurrency confirmed its breakout through the previous session high after trading up to BTC0.0006 above it intraday.
Daily Candlestick Chart (BCHBTC as at Nov 10, 2019):
Sunday's trading range has been BTC0.0012 (3.74%), that's below the last trading month's daily average range of BTC0.0019. 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 BCHBTC. Prices continued to consolidate within a tight trading range between 0.0310 and 0.0328 where it has been caught now for the whole last trading week.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
Prices are trading close to the key technical support level at 0.0315 (S1). Unable to break through the key technical resistance level at 0.0327 (R1), the market closed below it after spiking up to 0.0328 earlier during the day. The failure to close above the resistance could increase that levels significance going forward. When prices bounced off a significant resistance level the last time on October 25th, BCHBTC lost -8.42% on the following trading day. After having been unable to move lower than 0.0316 in the prior session, Bitcoin Cash found buyers again around the same price level today at 0.0316.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might accelerate should prices move below the close-by swing low at 0.0310 where further sell stops could get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Resistance R1" stand out. Its common bearish interpretation has been confirmed for BCH/BTC. Out of 167 times, BCHBTC closed lower 65.27% 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 64.07% with an average market move of -0.11%.
With six out of the seven Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are BCHUSD gaining 3.73% and EOSUSD closing 3.16% higher. On the flipside the worst performer has been XRPUSD closing -0.14% lower. Looking at the other Minor Cryptocurrencies, the winners of the day have been XLMUSD surging 8.52% and VETBTC closing 6.78% higher. The worst performers of the day have been KMDBTC tanking -9.82% and KMDUSD closing -7.06% lower. Read more