BCHUSD slides to lowest close ever
Bitcoin Cash/US Dollar Index (BCHUSD) Technical Analysis Report for Dec 08, 2018 | by Techniquant Editorial Team
Moving lower for the 7th day in a row, BCHUSD finished Saturday at 100.35 losing $4.95 (-4.7%) on high volume. Today's close at 100.35 marks the lowest recorded closing price ever. 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 (BCHUSD as at Dec 08, 2018):
Saturday's trading range has been $13.79 (13.14%), that's far below the last trading month's daily average range of $41.10. 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 lower than usual for BCHUSD.
After having been unable to move lower than 96.66 in the prior session, the market found buyers again around the same price level today at 95.49.
Crossing below the lower Bollinger Band for the first time since November 20th, prices have shown unusually strong downward momentum in the short-term. This could either indicate a potential selling climax after which prices might head back up towards the mean of the Bollinger Bands at 194.99 or signal the beginning of a strong momentum breakout leading to even lower prices. The last time prices broke out below the lower Bollinger Band on November 19th, BCHUSD lost -8.81% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed below the lower Bollinger Band" stand out. Its common bearish interpretation has been confirmed for BCH/USD. Out of 12 times, BCHUSD closed lower 58.33% 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 66.67% with an average market move of -4.87%.
With three of the other Major Cryptocurrencies closing higher and three closing lower today, the winners of the day are EOSUSD surging 6.86% and XRPUSD gaining 2.28%. On the flipside the worst performers have been LTCUSD closing -1.04% lower and ETHUSD losing -0.97%. Looking at the Minor Cryptocurrencies, the winners of the day have been BTCCNY surging 21.7% and ETHCNY closing 18.49% higher. The worst performers of the day have been BCHBTC tanking -6.69% and IOTBTC closing -4.13% lower. Read more