BTCJPY runs into sellers again around 1004511.87
Bitcoin/Japanese Yen Index (BTCJPY) Technical Analysis Report for May 23, 2020 | by Techniquant Editorial Team
BTCJPY finished Saturday at 988220.92 edging lower ¥401.37 (-0.04%) on low volume. Trading ¥15889.58 higher after the open, the cryptocurrency was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (BTCJPY as at May 23, 2020):
Saturday's trading range has been ¥25507.85 (2.58%), that's far below the last trading month's daily average range of ¥58667.80. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for BTCJPY.
Three candlestick patterns are matching today's price action, the Southern Doji which is known as bullish pattern, one bearish pattern, the Bearish Hikkake Pattern and one neutral pattern, the Doji.
Prices are trading close to the key technical support level at 971519.44 (S1). After spiking up to 1004511.87 during the day, BTC/JPY found resistance at the 20-day moving average at 999315.80. After having been unable to move above 997516.28 in the previous session, BTC ran into sellers again around the same price level today, failing to move higher than 1004511.87. The last time this happened on Wednesday, BTCJPY lost -4.88% on the following trading day.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling might accelerate should prices move below the close-by swing low at 949430.41 where further sell stops could get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for BTC/JPY. Out of 344 times, BTCJPY closed higher 59.01% 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 60.76% with an average market move of 4.79%.
With five out of the seven Major Cryptocurrencies closing lower today, the ones that stand out on the negative side are EOSUSD losing -1.16% and LTCUSD closing -0.81% lower. On the flipside the best performers have been ETCUSD closing 1.55% higher and BTCUSD gaining 0.23%. Looking at the other Minor Cryptocurrencies, the winners of the day have been BCNUSD surging 10.84% and XVGUSD closing 5.05% higher. The worst performers of the day have been HSRBTC tanking -9.88% and ARDRBTC closing -9.27% lower. Read more