BTCJPY closes above its opening price after recovering from early selling pressure
Bitcoin/Japanese Yen Index (BTCJPY) Technical Analysis Report for Oct 17, 2020 | by Techniquant Editorial Team
BTCJPY finished Saturday at 1197759.99 edging higher ¥3390.27 (0.28%) on low volume. Trading up to ¥5650.14 lower after the open, BTC/JPY managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on Thursday, BTCJPY actually lost -1.43% on the following trading day. 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 (BTCJPY as at Oct 17, 2020):
Saturday's trading range has been ¥14061.60 (1.18%), that's far below the last trading month's daily average range of ¥28395.79. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for BTCJPY. Prices continued to consolidate within a tight trading range between 1181555.97 and 1225650.46 where it has been caught now for the whole last trading week.
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. Additionally, one bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
Prices are trading close to the key technical support level at 1187811.67 (S1).
BTC shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying might speed up should prices move above the close-by swing high at 1225650.46 where further buy stops could get activated. Selling might accelerate should prices move below the nearby swing low at 1181555.97 where further sell stops could get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Spinning Top" stand out. Its common bullish interpretation has been confirmed for BTC/JPY. Out of 269 times, BTCJPY closed higher 54.65% 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 60.97% with an average market move of 4.73%.
With four out of the seven Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are ETHUSD gaining 0.81% and BTCUSD closing 0.37% higher. On the flipside the worst performers have been BCHUSD closing -2.05% lower and LTCUSD losing -1.43%. Looking at the other Minor Cryptocurrencies, the winners of the day have been WAVESUSD surging 8.14% and WAVESBTC closing 7.59% higher. The worst performers of the day have been BCNUSD tanking -10.94% and BCHBTC closing -2.26% lower. Read more