BCHBTC breaks back above 100-day moving average
Bitcoin Cash/Bitcoin Index (BCHBTC) Technical Analysis Report for Aug 06, 2020 | by Techniquant Editorial Team
BCHBTC ended Thursday at 0.0263 surging BTC0.0013 (5.2%) on high volume. Closing above Wednesday's high at 0.0260, the market confirmed its breakout through the previous session high after trading up to BTC0.0009 above it intraday.
Daily Candlestick Chart (BCHBTC as at Aug 06, 2020):
Thursday's trading range has been BTC0.0022 (8.8%), that's far above the last trading month's daily average range of BTC0.0012. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for BCHBTC.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. In spite of a weak opening the cryptocurrency managed to close above the prior day's open and close, forming a bullish Engulfing Candle. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
BCH managed to close back above the 100-day moving average at 0.0256. Unable to break through the key technical resistance level at 0.0264 (R1), BCH/BTC closed below it after spiking up to 0.0269 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. After having been unable to move lower than 0.0248 in the previous session, Bitcoin Cash found buyers again around the same price level today at 0.0247. The last time this happened on Tuesday, BCHBTC actually lost -3.10% on the following trading day.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the 12 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 195 times, BCHBTC closed lower 62.05% 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 62.56% with an average market move of -0.18%.
With five out of the seven Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are BCHUSD gaining 5.15% and EOSUSD closing 1.31% higher. On the flipside the worst performers have been ETCUSD closing -1.93% lower and ETHUSD losing -1.51%. Looking at the other Minor Cryptocurrencies, the winners of the day have been XEMUSD surging 10.16% and XEMBTC closing 10.06% higher. The worst performers of the day have been SCBTC tanking -3.57% and KMDUSD closing -2.9% lower. Read more