BTCCNY slips to lowest close since October 25th
Bitcoin/Chinese Yuan Index (BTCCNY) Technical Analysis Report for Nov 10, 2019 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, BTCCNY ended Sunday at 61658.25 losing CN¥541.75 (-0.87%) on low volume. Today's close at 61658.25 marks the lowest recorded closing price since October 25th. Trading CN¥3320.65 higher after the open, Bitcoin was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (BTCCNY as at Nov 10, 2019):
Sunday's trading range has been CN¥8223.76 (13.1%), that's slightly below the last trading month's daily average range of CN¥22303.00. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for BTCCNY. Prices continued to consolidate within a tight trading range between 57896.90 and 72610.94 where it has been caught now for the last three trading days.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
Unable to break through the key technical resistance level at 64978.10 (R1), the cryptocurrency closed below it after spiking up to 66120.66 earlier during the day. The failure to close above the resistance could increase that levels significance going forward. BTC was bought again around 57896.90 after having seen lows at 60084.13, 59240.44 and 59076.43 in the last three trading sessions. Obviously there is something going on at that level.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 72610.94 where further buy stops could get activated. Further selling might move prices lower should the market test October's close-by low at 51359.59.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Lower Closes" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for BTC/CNY. Out of 121 times, BTCCNY closed higher 57.02% 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 57.02% with an average market move of 4.11%.
With six out of the seven Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are BCHUSD gaining 3.73% and EOSUSD closing 3.16% higher. On the flipside the worst performer has been XRPUSD closing -0.14% lower. Looking at the other Minor Cryptocurrencies, the winners of the day have been XLMUSD surging 8.52% and VETBTC closing 6.78% higher. The worst performers of the day have been KMDBTC tanking -9.82% and KMDUSD closing -7.06% lower. Read more