BCHUSD soars, gaining $44.39 (17.12%) within a single day on high volume
Bitcoin Cash/US Dollar Index (BCHUSD) Technical Analysis Report for Nov 21, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, BCHUSD finished Saturday at 303.75 surging $44.39 (17.12%) on high volume. This is the biggest single-day gain in over nine months. The last time we've seen such an unusually strong single-day gain on November 8th, BCHUSD actually lost -2.40% on the following trading day. Today's close at 303.75 marks the highest recorded closing price since August 18th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Friday's high at 267.77, Bitcoin Cash confirmed its breakout through the prior session high after trading up to $36.36 above it intraday.
Daily Candlestick Chart (BCHUSD as at Nov 21, 2020):
Saturday's trading range has been $45.83 (17.67%), that's far above the last trading month's daily average range of $17.08. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for BCHUSD.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 270.05 (now S1), which is likely to act as support going forward.
Crossing above the upper Bollinger Band for the first time since October 15th, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 256.39 or signal the beginning of a strong momentum breakout leading to even higher prices.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed above the upper Bollinger Band" stand out. Its common bullish interpretation has been confirmed for BCH/USD. Out of 32 times, BCHUSD closed higher 59.38% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 71.88% with an average market move of 14.02%.