BTCCNY runs into sellers around 88824.93 for the third day in a row
Bitcoin/Chinese Yuan Index (BTCCNY) Technical Analysis Report for Aug 01, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, BTCCNY finished Saturday at 83881.92 surging CN¥4381.82 (5.51%). Today's close at 83881.92 marks the highest recorded closing price since September 29, 2019. 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 Aug 01, 2020):
Saturday's trading range has been CN¥12635.16 (15.89%), that's slightly below the last trading month's daily average range of CN¥15724.98. Weekly volatility is also lower, being slightly 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 70251.14 and 89648.31 where it has been caught now for the whole last trading week.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar.
Buyers managed to take out the key technical resistance level at 81804.41 (now S1), which is likely to act as support going forward. The cryptocurrency ran into sellers again today around 88824.93 for the third trading day in a row after having found sellers at 89648.31 in the previous session and at 87713.14 two days ago. The last time this happened on Thursday, BTCCNY actually gained 7.45% on the following trading day.
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 although could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 69215.87.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 89648.31 where further buy stops might get activated. Selling could speed up should prices move below the nearby swing low at 71570.58 where further sell stops might get triggered.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close above the upper Bollinger Band" stand out. Its common bullish interpretation has been confirmed for BTC/CNY. Out of 314 times, BTCCNY closed higher 42.68% 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 60.19% with an average market move of 8.44%.
With seven out of the seven Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are XRPUSD gaining 12.04% and ETHUSD closing 11.71% higher. None of the markets ended the day in the red. Looking at the other Minor Cryptocurrencies, the winners of the day have been ZECUSD surging 19.59% and DOGEUSD closing 15.6% higher. The worst performers of the day have been STRATBTC tanking -4.08% and ARDRBTC closing -4.0% lower. Read more