BTCJPY finds buyers at key support level
Bitcoin/Japanese Yen Index (BTCJPY) Technical Analysis Report for May 29, 2020 | by Techniquant Editorial Team
BTCJPY ended the month 9.56% higher at 1016232.94 after losing ¥14556.69 (-1.41%) today. 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 29, 2020):
Friday's trading range has been ¥31065.19 (3.01%), that's far below the last trading month's daily average range of ¥56389.23. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for BTCJPY.
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. After moving higher in the prior session, BTC closed lower but above the previous day's open today, forming a bearish Harami Candle.
After trading down to 1002989.75 earlier during the day, Bitcoin bounced off the key technical support level at 1008034.81 (S1). The failure to close below the support might increase that levels importance as support going forward. After having been unable to move above 1035786.23 in the prior session, the market ran into sellers again around the same price level today, missing to move higher than 1034054.94. The last time this happened on Tuesday, BTCJPY actually gained 4.27% on the following trading day.
BTC/JPY shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could speed up should prices move above the close-by swing high at 1035786.23 where further buy stops might get triggered. As prices are trading close to May's high at 1071313.71, upside momentum could accelerate should the cryptocurrency mark new highs for the month.
Among the four 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/JPY. Out of 451 times, BTCJPY closed higher 54.99% 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 57.21% with an average market move of 4.34%.
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