BTCJPY breaks below key technical support level
Bitcoin/Japanese Yen Index (BTCJPY) Technical Analysis Report for Nov 22, 2020 | by Techniquant Editorial Team
BTCJPY finished Sunday at 1910093.09 losing ¥30331.38 (-1.56%). Closing below Saturday's low at 1913218.23, BTC/JPY confirmed its breakout through the previous session low after trading up to ¥81326.90 below it intraday.
Daily Candlestick Chart (BTCJPY as at Nov 22, 2020):
Sunday's trading range has been ¥113599.02 (5.85%), that's above the last trading month's daily average range of ¥88289.94. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for BTCJPY.
Even with a strong opening Bitcoin closed below the prior day's open and close, forming a bearish Engulfing Candle.
Prices broke below the key technical support level at 1925947.94 (now R1), which is likely to act as resistance going forward. The last time this happened on September 23rd, BTCJPY actually gained 4.93% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 1971161.55 where further buy stops could get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed below last periods low" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for BTC/JPY. Out of 470 times, BTCJPY closed higher 56.81% 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 58.51% with an average market move of 3.73%.