BCNUSD rockets 12.03% closing $0.000016 higher
Bytecoin/US Dollar Index (BCNUSD) Technical Analysis Report for Nov 21, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, BCNUSD finished Saturday at 0.000149 surging $0.000016 (12.03%). This is the biggest single-day gain in over two weeks. Today's close at 0.000149 marks the highest recorded closing price since October 4th. The bulls were in full control today, moving the market higher throughout the whole session. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (BCNUSD as at Nov 21, 2020):
Saturday's trading range has been $0.000016 (12.03%), that's slightly above the last trading month's daily average range of $0.000015. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for BCNUSD. Prices continued to consolidate within a tight trading range between 0.000127 and 0.000153 where it has been caught now for the whole last trading week.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, three candlestick patterns are matching today's price action, the Bullish Closing Marubozu, the Bullish Marubozu and the White Candle which are known as bullish patterns. The last time a White Candle showed up on Tuesday, BCNUSD actually lost -11.03% on the following trading day.
Buyers managed to take out the key technical resistance level at 0.000141 (now S1), which is likely to act as support going forward. Prices are trading close to the key technical resistance level at 0.000157 (R1).
Crossing above the upper Bollinger Band for the first time since October 26th, 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 0.000131 or signal the beginning of a strong momentum breakout leading to even higher prices.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could accelerate should prices move above the close-by swing high at 0.000153 where further buy stops might get activated.
Among the 13 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Closing Marubozu" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for BCN/USD. Out of 64 times, BCNUSD closed lower 82.81% 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 76.56% with an average market move of -5.67%.