BCHBTC breaks above 20-day moving average for the first time since October 18th
Bitcoin Cash/Bitcoin Index (BCHBTC) Technical Analysis Report for Nov 21, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, BCHBTC finished Saturday at 0.0162 surging BTC0.0023 (16.55%) on high volume. This is the biggest single-day gain in over nine months. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Friday's high at 0.0143, Bitcoin Cash confirmed its breakout through the previous session high after trading up to BTC0.0020 above it intraday.
Daily Candlestick Chart (BCHBTC as at Nov 21, 2020):
Saturday's trading range has been BTC0.0025 (17.99%), that's far above the last trading month's daily average range of BTC0.0010. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for BCHBTC.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on November 6th, BCHBTC gained 3.01% on the following trading day.
BCH managed to close above the 20-day moving average at 0.0160 for the first time since October 18th. Unable to break through the key technical resistance level at 0.0163 (R1), the market closed below it after spiking up to 0.0163 earlier during the day. The failure to close above the resistance might increase that levels importance going forward.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 0.0163 where further buy stops might get triggered.
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 214 times, BCHBTC closed lower 60.75% 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 64.49% with an average market move of -0.42%.