BTCCNY closes below its opening price unable to hold early session gains
Bitcoin/Chinese Yuan Index (BTCCNY) Technical Analysis Report for Oct 17, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, BTCCNY ended Saturday at 76700.06 losing CN¥299.93 (-0.39%). Trading CN¥6336.82 higher after the open, the cryptocurrency was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (BTCCNY as at Oct 17, 2020):
Saturday's trading range has been CN¥10283.74 (13.36%), that's below the last trading month's daily average range of CN¥15683.01. 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.
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, one neutral candlestick pattern matches today's price action, the Doji.
Prices are trading close to the key technical support level at 70265.00 (S1). Unable to break through the key technical resistance level at 77358.25 (R1), Bitcoin closed below it after spiking up to 83336.81 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. When prices bounced off a significant resistance level the last time on Wednesday, BTCCNY actually gained 0.82% on the following trading day.
The market shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Further selling could move prices lower should the market test September's nearby low at 51203.38.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for BTC/CNY. Out of 599 times, BTCCNY closed higher 59.27% 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 55.76% with an average market move of 2.67%.
With four out of the seven Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are ETHUSD gaining 0.81% and BTCUSD closing 0.37% higher. On the flipside the worst performers have been BCHUSD closing -2.05% lower and LTCUSD losing -1.43%. Looking at the other Minor Cryptocurrencies, the winners of the day have been WAVESUSD surging 8.14% and WAVESBTC closing 7.59% higher. The worst performers of the day have been BCNUSD tanking -10.94% and BCHBTC closing -2.26% lower. Read more