BCHUSD runs into sellers again around 306.00
Bitcoin Cash/US Dollar Index (BCHUSD) Technical Analysis Report for Nov 22, 2020 | by Techniquant Editorial Team
BCHUSD finished Sunday at 288.14 losing $15.61 (-5.14%) on high volume. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (BCHUSD as at Nov 22, 2020):
Sunday's trading range has been $25.78 (8.49%), that's above the last trading month's daily average range of $17.54. 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 bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on November 15th, BCHUSD actually gained 3.56% on the following trading day.
After having been unable to move above 304.13 in the previous session, Bitcoin Cash ran into sellers again around the same price level today, missing to move higher than 306.00.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day though might signal a potential change in momentum that could lead to a correction back down towards the center of the Bollinger Bands at 257.92.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior High" stand out. Its common bearish interpretation has been confirmed for BCH/USD. Out of 311 times, BCHUSD closed lower 50.80% of the time on the next trading day after the market condition occurred.