BCHBTC breaks below Friday's low
Bitcoin Cash/Bitcoin Index (BCHBTC) Technical Analysis Report for Oct 17, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, BCHBTC finished Saturday at 0.0216 losing BTC0.0005 (-2.26%). Closing below Friday's low at 0.0217, the market confirmed its breakout through the prior session low after trading up to BTC0.0003 below it intraday.
Daily Candlestick Chart (BCHBTC as at Oct 17, 2020):
Saturday's trading range has been BTC0.0008 (3.62%), that's slightly above the last trading month's daily average range of BTC0.0007. 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.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on October 12th, BCHBTC actually gained 6.73% on the following trading day.
After trading as low as 0.0214 during the day, BCH found support at the 50-day moving average at 0.0216.
Though BCH/BTC is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
As prices are trading close to October's low at 0.0204, downside momentum might accelerate should the cryptocurrency mark new lows for the month.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Bounce off SMA 50" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for BCH/BTC. Out of 21 times, BCHBTC closed lower 57.14% 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 two trading days, showing a win rate of 61.90% with an average market move of 1.43%.
With four out of the seven Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are ETHUSD gaining 0.81% and BTCUSD closing 0.37% higher. On the flipside the worst performers have been BCHUSD closing -2.05% lower and LTCUSD losing -1.43%. Looking at the other Minor Cryptocurrencies, the winners of the day have been WAVESUSD surging 8.14% and WAVESBTC closing 7.59% higher. The worst performers of the day have been BCNUSD tanking -10.94% and LTCCNY closing -2.16% lower. Read more