BCHUSD breaks back below 200-day moving average
Bitcoin Cash/US Dollar Index (BCHUSD) Technical Analysis Report for Oct 17, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, BCHUSD ended Saturday at 245.21 losing $5.12 (-2.05%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (BCHUSD as at Oct 17, 2020):
Saturday's trading range has been $11.08 (4.43%), that's slightly above the last trading month's daily average range of $10.24. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for BCHUSD.
The cryptocurrency closed back below the 200-day moving average at 246.05. When this moving average was crossed below the last time on September 3rd, BCHUSD actually gained 5.73% on the following trading day.
BCH shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Selling might speed up should prices move below the close-by swing low at 234.05 where further sell stops could get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 200" stand out. Its common bearish interpretation has been confirmed for BCH/USD. Out of 9 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 10 trading days, showing a win rate of 55.56% with an average market move of -7.51%.
With four out of the other six Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are ETHUSD gaining 0.81% and BTCUSD closing 0.37% higher. On the flipside the worst performers have been LTCUSD closing -1.43% lower and EOSUSD losing -0.39%. Looking at the Minor Cryptocurrencies, the winners of the day have been WAVESUSD surging 8.14% and WAVESBTC closing 7.59% higher. The worst performers of the day have been BCNUSD tanking -10.94% and BCHBTC closing -2.26% lower. Read more