BTCEUR finds buyers at key support level
Bitcoin/Euro Index (BTCEUR) Technical Analysis Report for May 29, 2020 | by Techniquant Editorial Team
BTCEUR ended the month 7.58% higher at 8500.81 after losing €133.32 (-1.54%) today. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (BTCEUR as at May 29, 2020):
Friday's trading range has been €261.17 (3.02%), that's below the last trading month's daily average range of €479.46. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for BTCEUR.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. After moving higher in the previous session, the market closed lower but above the prior day's open today, forming a bearish Harami Candle. Additionally, two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns. The last time a Bearish Short Candle showed up on April 19th, BTCEUR lost -3.97% on the following trading day.
After trading down to 8398.83 earlier during the day, BTC bounced off the key technical support level at 8472.42 (S1). The failure to close below the support might increase that levels significance as support going forward. After having been unable to move above 8676.26 in the previous session, Bitcoin ran into sellers again around the same price level today, failing to move higher than 8660.00.
The cryptocurrency shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could accelerate should prices move above the close-by swing high at 8676.26 where further buy stops might get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for BTC/EUR. Out of 469 times, BTCEUR closed higher 55.22% 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 56.93% with an average market move of 2.99%.
With four out of the seven Major Cryptocurrencies closing lower today, the ones that stand out on the negative side are BTCUSD losing -1.62% and XRPUSD closing -1.4% lower. On the flipside the best performers have been ETCUSD closing 5.1% higher and EOSUSD gaining 0.38%. Looking at the other Minor Cryptocurrencies, the winners of the day have been ETCBTC surging 6.98% and PIVXBTC closing 5.97% higher. The worst performers of the day have been STRATUSD tanking -2.94% and ZECUSD closing -2.43% lower. Read more