BTCJPY pushes through key technical resistance level
Bitcoin/Japanese Yen Index (BTCJPY) Technical Analysis Report for Aug 05, 2020 | by Techniquant Editorial Team
BTCJPY finished Wednesday at 1241504.78 surging ¥57069.95 (4.82%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Tuesday's high at 1212521.26, the cryptocurrency confirmed its breakout through the previous session high after trading up to ¥33461.54 above it intraday.
Daily Candlestick Chart (BTCJPY as at Aug 05, 2020):
Wednesday's trading range has been ¥71313.23 (6.02%), that's above the last trading month's daily average range of ¥45501.23. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for BTCJPY.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern. The last time a White Candle showed up on August 1st, BTCJPY actually lost -6.36% on the following trading day.
Buyers managed to take out the key technical resistance level at 1190395.04 (now S1), which is likely to act as support going forward. After having been unable to move lower than 1172422.44 in the prior session, Bitcoin found buyers again around the same price level today at 1174669.57.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(14) above 70" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for BTC/JPY. Out of 81 times, BTCJPY closed higher 62.96% 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 72.84% with an average market move of 11.88%.
With seven out of the seven Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are BTCUSD gaining 4.98% and ETHUSD closing 2.91% 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 15.29% and ZECBTC closing 9.63% higher. The worst performers of the day have been QTUMBTC tanking -7.09% and XLMBTC closing -6.91% lower. Read more