BTCUSD unable to break through key resistance level
Bitcoin/US Dollar Index (BTCUSD) Technical Analysis Report for Mar 25, 2020 | by Techniquant Editorial Team
BTCUSD ended Wednesday at 6694.21 losing $72.97 (-1.08%). Trading $213.11 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. 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 (BTCUSD as at Mar 25, 2020):
Wednesday's trading range has been $497.29 (7.35%), that's below the last trading month's daily average range of $788.07. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for BTCUSD.
After moving higher in the prior session, BTC closed lower but above the previous day's open today, forming a bearish Harami Candle. Additionally, one bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
Unable to break through the key technical resistance level at 6932.04 (R1), the cryptocurrency closed below it after spiking up to 6980.29 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. When prices bounced off a significant resistance level the last time on March 11th, BTCUSD lost -28.92% on the following trading day. After having been unable to move lower than 6406.64 in the prior session, Bitcoin found buyers again around the same price level today at 6483.00.
While BTC/USD is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for BTC/USD. Out of 412 times, BTCUSD closed higher 56.55% 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 58.01% with an average market move of 6.27%.
With six out of the other six Major Cryptocurrencies closing lower today, the ones that stand out on the negative side are LTCUSD losing -3.51% and BCHUSD closing -3.1% lower. None of the markets managed to end the day in the green. Looking at the Minor Cryptocurrencies, the winners of the day have been PIVXBTC surging 4.86% and PIVXUSD closing 3.76% higher. The worst performers of the day have been BCNUSD tanking -6.28% and KCSBTC closing -4.97% lower. Read more