BTCUSD unable to break through key resistance level
Bitcoin/US Dollar Index (BTCUSD) Technical Analysis Report for Jun 11, 2019 | by Techniquant Editorial Team
BTCUSD ended Tuesday at 7922.61 losing $72.56 (-0.91%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (BTCUSD as at Jun 11, 2019):
Tuesday's trading range has been $325.20 (4.05%), that's slightly below the last trading month's daily average range of $432.33. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly lower than usual for BTCUSD. Prices continued to consolidate within a tight trading range between 7533.53 and 8127.63 where it has been caught now for the whole last trading week.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar.
Unable to break through the key technical resistance level at 8027.21 (R1), the cryptocurrency closed below it after spiking up to 8049.78 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. After having been unable to move above 8061.50 in the prior session, the market ran into sellers again around the same price level today, missing to move higher than 8049.78. The last time this happened on June 6th, BTCUSD actually gained 2.68% on the following trading day.
Though BTC/USD is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Buying could speed up should prices move above the close-by swing high at 8061.50 where further buy stops might get activated. Selling could accelerate should prices move below the nearby swing low at 7533.53 where further sell stops might get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for BTC/USD. Out of 1,246 times, BTCUSD closed higher 50.96% 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 56.90% with an average market move of 3.78%.
With five out of the other six Major Cryptocurrencies closing lower today, the ones that stand out on the negative side are XRPUSD losing -1.58% and EOSUSD closing -1.4% lower. On the flipside the best performer has been LTCUSD closing 5.45% higher. Looking at the Minor Cryptocurrencies, the winners of the day have been LTCBTC surging 6.63% and LTCJPY closing 6.61% higher. The worst performers of the day have been BCNUSD tanking -9.07% and HSRBTC closing -6.48% lower. Read more