BTCCNY finds buyers at key support level
Bitcoin/Chinese Yuan Index (BTCCNY) Technical Analysis Report for Oct 18, 2020 | by Techniquant Editorial Team
BTCCNY finished Sunday at 77499.96 gaining CN¥799.90 (1.04%). Trading up to CN¥6700.06 lower after the open, BTC managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (BTCCNY as at Oct 18, 2020):
Sunday's trading range has been CN¥16277.73 (21.22%), that's slightly above the last trading month's daily average range of CN¥15842.26. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for BTCCNY.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. Additionally, four candlestick patterns are matching today's price action, the Northern Doji which is known as bearish pattern and three neutral patterns, the Doji, the Long-Legged Doji and the Rickshaw-Man.
After trading down to 70000.00 earlier during the day, the market bounced off the key technical support level at 70265.00 (S2). The failure to close below the support might increase that levels importance as support going forward. Prices are trading close to the key technical resistance level at 88294.76 (R1). BTC/CNY found buyers again today around 70000.00 for the third trading day in a row after having found demand at 73053.07 in the previous session and at 69999.99 two days ago. The last time this happened on October 9th, BTCCNY gained 3.34% on the following trading day.
The cryptocurrency 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 nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Long-Legged Doji" stand out. Though it is usually interpreted as neutral, it has actually shown to be bearish for BTC/CNY. Out of 43 times, BTCCNY closed lower 58.14% of the time on the next trading day after the market condition occurred.
With six out of the seven Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are ETHUSD gaining 2.69% and BCHUSD closing 1.76% higher. On the flipside the worst performer has been ETCUSD closing -0.36% lower. Looking at the other Minor Cryptocurrencies, the winners of the day have been BCNUSD surging 13.16% and VETBTC closing 5.15% higher. The worst performers of the day have been WAVESBTC tanking -5.27% and WAVESUSD closing -4.08% lower. Read more