BCHUSD finds buyers at key support level
Bitcoin Cash/US Dollar Index (BCHUSD) Technical Analysis Report for Jul 10, 2020 | by Techniquant Editorial Team
BCHUSD ended the week 7.01% higher at 238.29 after gaining $0.15 (0.06%) today. Trading up to $5.35 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (BCHUSD as at Jul 10, 2020):
Friday's trading range has been $6.95 (2.92%), that's below the last trading month's daily average range of $9.83. 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.
Three candlestick patterns are matching today's price action, the Hanging Man and the Northern Doji which are both known as bearish patterns and one neutral pattern, the Doji.
After trading down to 232.79 earlier during the day, BCH bounced off the key technical support level at 237.23 (S1). The failure to close below the support might increase that levels significance as support going forward. After having been unable to move lower than 233.15 in the previous session, the cryptocurrency found buyers again around the same price level today at 232.79. The last time this happened on Wednesday, BCHUSD actually lost -2.14% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 245.94 where further buy stops might get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Northern Doji" stand out. Its common bearish interpretation has been confirmed for BCH/USD. Out of 27 times, BCHUSD closed lower 66.67% 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 six trading days, showing a win rate of 55.56% with an average market move of -1.32%.
With five out of the other six Major Cryptocurrencies closing lower today, the ones that stand out on the negative side are ETCUSD losing -4.06% and XRPUSD closing -1.83% lower. On the flipside the best performer has been BTCUSD closing 0.54% higher. Looking at the Minor Cryptocurrencies, the winners of the day have been BCNUSD surging 26.82% and STRATUSD closing 8.47% higher. The worst performers of the day have been DOGEUSD tanking -18.44% and VETBTC closing -6.09% lower. Read more