BTCJPY still stuck within tight trading range
Bitcoin/Japanese Yen Index (BTCJPY) Technical Analysis Report for Oct 18, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, BTCJPY finished Sunday at 1213254.88 gaining ¥15494.89 (1.29%) on low volume. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Saturday's high at 1202781.18, the market confirmed its breakout through the previous session high after trading up to ¥12301.63 above it intraday.
Daily Candlestick Chart (BTCJPY as at Oct 18, 2020):
Sunday's trading range has been ¥18556.00 (1.55%), that's below the last trading month's daily average range of ¥27780.64. 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.
Three candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns and one bearish pattern, the Bearish Hikkake Pattern. The last time a Bullish Short Candle showed up on October 11th, BTCJPY gained 1.25% on the following trading day.
Prices are trading close to the key technical resistance level at 1230155.90 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 1225650.46 where further buy stops might get activated.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Hikkake Pattern" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for BTC/JPY. Out of 245 times, BTCJPY closed higher 58.37% 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 55.51% with an average market move of 4.12%.
With six out of the seven Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are ETHUSD gaining 2.69% and BCHUSD closing 1.76% higher. On the flipside the worst performer has been ETCUSD closing -0.36% lower. Looking at the other Minor Cryptocurrencies, the winners of the day have been BCNUSD surging 13.16% and VETBTC closing 5.15% higher. The worst performers of the day have been WAVESBTC tanking -5.27% and WAVESUSD closing -4.08% lower. Read more