BCHBTC finds buyers again around 0.0215
Bitcoin Cash/Bitcoin Index (BCHBTC) Technical Analysis Report for Oct 18, 2020 | by Techniquant Editorial Team
BCHBTC ended Sunday at 0.0217 gaining BTC0.0001 (0.46%) on low volume. Trading up to BTC0.0001 lower after the open, BCH managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on September 26th, BCHBTC gained 3.40% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (BCHBTC as at Oct 18, 2020):
Sunday's trading range has been BTC0.0003 (1.39%), that's far below the last trading month's daily average range of BTC0.0007. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for BCHBTC.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. After moving lower in the previous session, Bitcoin Cash managed to close higher but below the prior day's open, forming a bullish Harami Candle.
After having been unable to move lower than 0.0214 in the previous session, the cryptocurrency found buyers again around the same price level today at 0.0215.
Though BCH/BTC is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Selling could accelerate should prices move below the close-by swing low at 0.0214 where further sell stops might get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. While it is usually interpreted as neutral, it has actually shown to be bearish for BCH/BTC. Out of 512 times, BCHBTC closed lower 58.59% 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 seven trading days, showing a win rate of 60.16% with an average market move of 0.93%.
With six out of the seven Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are ETHUSD gaining 2.69% and BCHUSD closing 1.76% higher. On the flipside the worst performer has been ETCUSD closing -0.36% lower. Looking at the other Minor Cryptocurrencies, the winners of the day have been BCNUSD surging 13.16% and VETBTC closing 5.15% higher. The worst performers of the day have been WAVESBTC tanking -5.27% and WAVESUSD closing -4.08% lower. Read more