BCHUSD closes within prior day's range after lackluster session
Bitcoin Cash/US Dollar Index (BCHUSD) Technical Analysis Report for May 23, 2020 | by Techniquant Editorial Team
BCHUSD ended Saturday at 234.32 losing $0.34 (-0.14%) on low volume. Trading $5.21 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (BCHUSD as at May 23, 2020):
Saturday's trading range has been $7.36 (3.14%), that's below the last trading month's daily average range of $14.64. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for BCHUSD.
Three candlestick patterns are matching today's price action, the Southern Doji which is known as bullish pattern, one bearish pattern, the Bearish Hikkake Pattern and one neutral pattern, the Doji. The last time a Doji showed up on April 25th, BCHUSD gained 3.46% on the following trading day.
After trading down to 232.51 earlier during the day, BCH/USD bounced off the key technical support level at 233.71 (S1). The failure to close below the support could increase that levels significance as support going forward.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might speed up should prices move below the close-by swing low at 220.60 where further sell stops could get triggered. As prices are trading close to May's low at 219.35, downside momentum might accelerate should Bitcoin Cash mark new lows for the month.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Hikkake Pattern" stand out. Its common bearish interpretation has been confirmed for BCH/USD. Out of 82 times, BCHUSD closed lower 56.10% 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 three trading days, showing a win rate of 63.41% with an average market move of -0.95%.
With four out of the other six Major Cryptocurrencies closing lower today, the ones that stand out on the negative side are EOSUSD losing -1.16% and LTCUSD closing -0.81% lower. On the flipside the best performers have been ETCUSD closing 1.55% higher and BTCUSD gaining 0.23%. Looking at the Minor Cryptocurrencies, the winners of the day have been BCNUSD surging 10.84% and XVGUSD closing 5.05% higher. The worst performers of the day have been HSRBTC tanking -9.88% and ARDRBTC closing -9.27% lower. Read more