BTCUSD unable to break through key resistance level
Bitcoin/US Dollar Index (BTCUSD) Technical Analysis Report for May 23, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, BTCUSD finished Saturday at 9186.19 edging higher $21.06 (0.23%) on low volume. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (BTCUSD as at May 23, 2020):
Saturday's trading range has been $210.26 (2.29%), that's far below the last trading month's daily average range of $562.11. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for BTCUSD.
Two candlestick patterns are matching today's price action, the Bullish Spinning Top which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern.
Unable to break through the key technical resistance level at 9197.48 (R1), BTC/USD closed below it after spiking up to 9311.34 earlier during the day. The failure to close above the resistance might increase that levels importance going forward. After having been unable to move above 9265.04 in the previous session, Bitcoin ran into sellers again around the same price level today, failing to move higher than 9311.34. The last time this happened on Wednesday, BTCUSD lost -4.74% on the following trading day.
The cryptocurrency shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling could speed up should prices move below the nearby swing low at 8811.54 where further sell stops might get activated.
Among the six 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/USD. Out of 353 times, BTCUSD closed higher 55.81% 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 53.54% with an average market move of 2.98%.
With five out of the other six Major Cryptocurrencies closing lower today, the ones that stand out on the negative side are EOSUSD losing -1.16% and LTCUSD closing -0.81% lower. On the flipside the best performer has been ETCUSD closing 1.55% higher. Looking at the Minor Cryptocurrencies, the winners of the day have been BCNUSD surging 10.84% and XVGUSD closing 5.05% higher. The worst performers of the day have been HSRBTC tanking -9.88% and ARDRBTC closing -9.27% lower. Read more