BTCCNY closes below its opening price unable to hold early session gains
Bitcoin/Chinese Yuan Index (BTCCNY) Technical Analysis Report for May 23, 2020 | by Techniquant Editorial Team
BTCCNY finished Saturday at 66065.01 edging lower CN¥457.57 (-0.69%) on low volume. Trading CN¥9999.02 higher after the open, BTC/CNY 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 May 23, 2020):
Saturday's trading range has been CN¥14021.60 (21.08%), that's slightly below the last trading month's daily average range of CN¥23237.97. Things look different on the weekly timeframe, where the market's trading range of the last week has been above 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 58897.85 and 76521.60 where it has been caught now for the last three trading days.
Two candlestick patterns are matching today's price action, the Southern Doji which is known as bullish pattern and one neutral pattern, the Doji. The last time a Southern Doji showed up on May 12th, BTCCNY gained 9.66% on the following trading day.
Prices are trading close to the key technical support level at 57506.81 (S1). Unable to break through the key technical resistance level at 75457.73 (R1), Bitcoin closed below it after spiking up to 76521.60 earlier during the day. The failure to close above the resistance could increase that levels significance going forward. BTC found buyers again today around 62500.00 for the third trading day in a row after having found demand at 58897.85 in the prior session and at 61920.86 two days ago.
The cryptocurrency shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling might speed up should prices move below the nearby swing low at 58897.85 where further sell stops could get activated. With prices trading close to this year's low at 29884.30, downside momentum might accelerate should the market break out to new lows for the year. Further selling could move prices lower should the market test April's close-by low at 43054.97.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for BTC/CNY. Out of 534 times, BTCCNY closed higher 59.18% 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 55.06% with an average market move of 2.69%.
With five out of the seven Major Cryptocurrencies closing lower today, the ones that stand out on the negative side are EOSUSD losing -1.16% and LTCUSD closing -0.81% lower. On the flipside the best performers have been ETCUSD closing 1.55% higher and BTCUSD gaining 0.23%. Looking at the other Minor Cryptocurrencies, the winners of the day have been BCNUSD surging 10.84% and XVGUSD closing 5.05% higher. The worst performers of the day have been HSRBTC tanking -9.88% and ARDRBTC closing -9.27% lower. Read more