BTCJPY dominated by bulls lifting the market higher throughout the day
Bitcoin/Japanese Yen Index (BTCJPY) Technical Analysis Report for Aug 01, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, BTCJPY finished Saturday at 1253513.47 surging ¥51679.41 (4.3%) on high volume. Today's close at 1253513.47 marks the highest recorded closing price since August 8, 2019. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Friday's high at 1211870.13, Bitcoin confirmed its breakout through the previous session high after trading up to ¥47394.69 above it intraday.
Daily Candlestick Chart (BTCJPY as at Aug 01, 2020):
Saturday's trading range has been ¥67803.92 (5.64%), that's far above the last trading month's daily average range of ¥33932.62. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for BTCJPY.
One bullish candlestick pattern matches today's price action, the White Candle.
After trading down to 1191460.90 earlier during the day, the cryptocurrency bounced off the key technical support level at 1194578.92 (S1). The failure to close below the support might increase that levels significance as support going forward. When prices bounced off a significant support level the last time on July 14th, BTCJPY actually lost -0.85% on the following trading day.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day though could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 1056536.30.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for BTC/JPY. Out of 384 times, BTCJPY closed higher 54.43% 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 59.64% with an average market move of 5.19%.
With seven out of the seven Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are XRPUSD gaining 12.04% and ETHUSD closing 11.71% higher. None of the markets ended the day in the red. Looking at the other Minor Cryptocurrencies, the winners of the day have been ZECUSD surging 19.59% and DOGEUSD closing 15.6% higher. The worst performers of the day have been STRATBTC tanking -4.08% and ARDRBTC closing -4.0% lower. Read more