BCHBTC still stuck within tight trading range
Bitcoin Cash/Bitcoin Index (BCHBTC) Technical Analysis Report for May 23, 2020 | by Techniquant Editorial Team
BCHBTC finished Saturday at 0.0255 edging lower BTC0.0001 (-0.39%) on low volume. Trading BTC0.0002 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (BCHBTC as at May 23, 2020):
Saturday's trading range has been BTC0.0005 (1.95%), that's far below the last trading month's daily average range of BTC0.0010. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for BCHBTC. Prices continued to consolidate within a tight trading range between 0.0248 and 0.0258 where it has been caught now for the whole last trading week.
After moving higher in the prior session, Bitcoin Cash closed lower but above the previous day's open today, forming a bearish Harami Candle. The last time this candlestick pattern showed up on April 7th, BCHBTC actually gained 3.42% on the following trading day. Additionally, one bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
After having been unable to move above 0.0257 in the prior session, BCH/BTC ran into sellers again around the same price level today, missing to move higher than 0.0258.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 0.0259 where further buy stops might get activated. Selling could speed up should prices move below the nearby swing low at 0.0248 where further sell stops might get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Harami Candle" stand out. Its common bearish interpretation has been confirmed for BCH/BTC. Out of 18 times, BCHBTC closed lower 66.67% 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 72.22% with an average market move of 2.23%.
With five out of the seven Major Cryptocurrencies closing lower today, the ones that stand out on the negative side are EOSUSD losing -1.16% and LTCUSD closing -0.81% lower. On the flipside the best performers have been ETCUSD closing 1.55% higher and BTCUSD gaining 0.23%. Looking at the other Minor Cryptocurrencies, the winners of the day have been BCNUSD surging 10.84% and XVGUSD closing 5.05% higher. The worst performers of the day have been HSRBTC tanking -9.88% and ARDRBTC closing -9.27% lower. Read more