BCHUSD finds buyers at key support level
Bitcoin Cash/US Dollar Index (BCHUSD) Technical Analysis Report for Nov 10, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, BCHUSD ended Sunday at 293.35 gaining $10.56 (3.73%) on low volume. Closing above Saturday's high at 283.76, the market confirmed its breakout through the previous session high after trading up to $15.26 above it intraday.
Daily Candlestick Chart (BCHUSD as at Nov 10, 2019):
Sunday's trading range has been $19.56 (6.92%), that's slightly below the last trading month's daily average range of $21.54. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for BCHUSD.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on November 5th, BCHUSD actually gained 4.70% on the following trading day.
After trading down to 279.46 earlier during the day, BCH/USD bounced off the key technical support level at 281.88 (S1). The failure to close below the support could increase that levels significance as support going forward. Prices are trading close to the key technical resistance level at 305.28 (R1).
Though the cryptocurrency is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could accelerate should prices move above the close-by swing high at 307.81 where further buy stops might get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for BCH/USD. Out of 91 times, BCHUSD closed lower 61.54% of the time on the next trading day after the market condition occurred.
With five out of the other six Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are EOSUSD gaining 3.16% and BTCUSD closing 2.72% higher. On the flipside the worst performer has been XRPUSD closing -0.14% lower. Looking at the Minor Cryptocurrencies, the winners of the day have been XLMUSD surging 8.52% and VETBTC closing 6.78% higher. The worst performers of the day have been KMDBTC tanking -9.82% and KMDUSD closing -7.06% lower. Read more