BTCCNY closes within prior day's range
Bitcoin/Chinese Yuan Index (BTCCNY) Technical Analysis Report for Nov 22, 2020 | by Techniquant Editorial Team
BTCCNY finished Sunday at 123299.96 gaining CN¥1469.07 (1.21%) on low volume. Today's close at 123299.96 marks the highest recorded closing price since December 29, 2017. Trading up to CN¥16830.94 lower after the open, the cryptocurrency 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 Nov 22, 2020):
Sunday's trading range has been CN¥32862.63 (26.97%), that's slightly below the last trading month's daily average range of CN¥37197.87. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for BTCCNY. Prices continued to consolidate within a tight trading range between 98719.51 and 141219.46 where it has been caught now for the whole last trading week.
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, five candlestick patterns are matching today's price action, the Last Engulfing Top Pattern and the Northern Doji which are both known as bearish patterns and three neutral patterns, the Doji, the Long-Legged Doji and the Rickshaw-Man. The last time a Last Engulfing Top Pattern showed up on November 8th, BTCCNY actually gained 5.98% on the following trading day.
After trading down to 104999.95 earlier during the day, Bitcoin bounced off the key technical support level at 120927.47 (S1). The failure to close below the support might increase that levels significance as support going forward. BTC ran into sellers again today around 137862.58 for the third trading day in a row after having found sellers at 141219.46 in the prior session and at 138881.17 two days ago.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 141219.46 where further buy stops might get activated. Selling could speed up should prices move below the close-by swing low at 98719.51 where further sell stops might get triggered. As prices are trading close to November's low at 84248.09, downside momentum could accelerate should BTC/CNY mark new lows for the month.
Among the 13 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bullish Intraday Reversal" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for BTC/CNY. Out of 470 times, BTCCNY closed lower 55.32% of the time on the next trading day after the market condition occurred.