BTCEUR dominated by bears dragging the market lower throughout the day
Bitcoin/Euro Index (BTCEUR) Technical Analysis Report for Jul 16, 2019 | by Techniquant Editorial Team
BTCEUR finished Tuesday at 8449.01 tanking €1255.91 (-12.94%). This is the biggest single-day loss in over two weeks. Today's close at 8449.01 marks the lowest recorded closing price since June 19th. The bears were in full control today, moving the market lower throughout the whole session. Closing below Monday's low at 8799.50, BTC confirmed its breakout through the previous session low after trading up to €428.86 below it intraday.
Daily Candlestick Chart (BTCEUR as at Jul 16, 2019):
Tuesday's trading range has been €1436.29 (14.89%), that's above the last trading month's daily average range of €1055.59. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for BTCEUR.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 8142.45 (S1). Bitcoin closed below the 50-day moving average at 8805.15 for the first time since February 16th. After having been unable to move above 9841.49 in the prior session, the cryptocurrency ran into sellers again around the same price level today, missing to move higher than 9806.93. The last time this happened on July 13th, BTCEUR lost -10.34% on the following trading day.
Crossing below the lower Bollinger Band for the first time since January 29th, prices have shown unusually strong downward momentum in the short-term. This could either indicate a potential selling climax after which prices might head back up towards the mean of the Bollinger Bands at 10030.29 or signal the beginning of a strong momentum breakout leading to even lower prices.
Though BTC/EUR is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Strong Down Move" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for BTC/EUR. Out of 190 times, BTCEUR closed higher 57.89% 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 62.11% with an average market move of 7.08%.
With seven out of the seven Major Cryptocurrencies closing lower today, the ones that stand out on the negative side are EOSUSD losing -14.88% and ETHUSD closing -13.63% lower. None of the markets managed to end the day in the green. Looking at the other Minor Cryptocurrencies, the winners of the day have been WAVESBTC surging 12.98% and XRPBTC closing 8.67% higher. The worst performers of the day have been BATUSD tanking -18.25% and ETHCNY closing -17.61% lower. Read more