BCHUSD finds buyers at key support level
Bitcoin Cash/US Dollar Index (BCHUSD) Technical Analysis Report for Feb 10, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, BCHUSD ended Sunday at 126.85 losing $0.52 (-0.41%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (BCHUSD as at Feb 10, 2019):
Sunday's trading range has been $7.48 (5.85%), that's slightly below the last trading month's daily average range of $7.95. 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.
Two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and one bearish pattern, the Hanging Man. The last time a Hanging Man showed up on December 29, 2018, BCHUSD lost -6.06% on the following trading day.
After trading down to 120.90 earlier during the day, BCH/USD bounced off the key technical support level at 122.32 (S1). The failure to close below the support might increase that levels significance as support going forward.
Though Bitcoin Cash is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might speed up should prices move above the nearby swing high at 131.99 where further buy stops could get activated. With prices trading close to this year's low at 105.52, downside momentum might accelerate should BCH break out to new lows for the year.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Although it is usually interpreted as neutral, it has actually shown to be bearish for BCH/USD. Out of 183 times, BCHUSD closed lower 57.92% 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 61.20% with an average market move of -1.02%.
With five out of the other six Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are LTCUSD gaining 5.94% and ETHUSD closing 5.17% higher. On the flipside the worst performer has been XRPUSD closing -0.51% lower. Looking at the Minor Cryptocurrencies, the winners of the day have been HSRBTC surging 9.24% and LTCGBP closing 6.51% higher. The worst performers of the day have been BCNUSD tanking -4.57% and TRXBTC closing -1.95% lower. Read more