BTCCNY breaks back above 20-day moving average
Bitcoin/Chinese Yuan Index (BTCCNY) Technical Analysis Report for Jun 01, 2020 | by Techniquant Editorial Team
BTCCNY ended Monday at 69432.97 gaining CN¥3444.01 (5.22%) on low volume. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (BTCCNY as at Jun 01, 2020):
Monday's trading range has been CN¥6568.18 (9.95%), that's below the last trading month's daily average range of CN¥18645.68. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for BTCCNY. Prices continued to consolidate within a tight trading range between 61413.07 and 77209.35 where it has been caught now for the whole last trading week.
One bullish candlestick pattern matches today's price action, the White Candle.
The market managed to close back above the 20-day moving average at 67013.32. Prices are trading close to the key technical resistance level at 76521.60 (R1). After having been unable to move lower than 65533.59 in the previous session, the cryptocurrency found buyers again around the same price level today at 64688.10. The last time this happened on May 29th, BTCCNY gained 6.77% on the following trading day.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might speed up should prices move above the close-by swing high at 77209.35 where further buy stops could get triggered. Selling might accelerate should prices move below the nearby swing low at 61413.07 where further sell stops could get activated. Trading close to April's low at 43054.97 we might see further downside momentum if potential sell stops at the level get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "White Candle" stand out. Its common bullish interpretation has been confirmed for BTC/CNY. Out of 630 times, BTCCNY closed higher 49.05% 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 58.41% with an average market move of 5.78%.
With seven out of the seven Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are BTCUSD gaining 8.05% and ETHUSD closing 7.11% higher. None of the markets ended the day in the red. Looking at the other Minor Cryptocurrencies, the winners of the day have been LTCGBP surging 18.45% and NEOUSD closing 13.82% higher. The worst performers of the day have been STEEMBTC tanking -9.09% and XVGBTC closing -6.67% lower. Read more