BTCEUR breaks below key technical support level
Bitcoin/Euro Index (BTCEUR) Technical Analysis Report for Jan 23, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, BTCEUR ended Thursday at 7599.85 losing €211.09 (-2.7%). Closing below Wednesday's low at 7743.50, BTC/EUR confirmed its breakout through the previous session low after trading up to €257.41 below it intraday.
Daily Candlestick Chart (BTCEUR as at Jan 23, 2020):
Thursday's trading range has been €332.99 (4.26%), that's slightly above the last trading month's daily average range of €302.00. 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 slightly higher than usual for BTCEUR.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices broke below the key technical support level at 7669.72 (now R1), which is likely to act as resistance going forward. The last time this happened on January 9th, BTCEUR actually gained 4.57% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for BTC/EUR. Out of 335 times, BTCEUR closed higher 57.61% 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 53.43% with an average market move of 1.68%.
With seven out of the seven Major Cryptocurrencies closing lower today, the ones that stand out on the negative side are ETCUSD losing -9.63% and LTCUSD closing -6.3% 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 BCNUSD surging 19.15% and LSKBTC closing 7.06% higher. The worst performers of the day have been BTGUSD tanking -9.33% and XEMUSD closing -9.01% lower. Read more